Financial Stability in Dollarized Economies

Occasional Papers, June 15, 2004

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Financial Stability in Dollarized Economies

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Bibliographic details

• Authors: Anne Marie Gulde, David S. Hoelscher, Alain Ize, Dewitt D Marston, Gianni De Nicolo
• Published: June 15, 2004
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781589062962.084

Overview and purpose

• Paper addresses the challenges to prudential supervision in highly dollarized economies, where central banks and supervisors may be constrained in the use of standard money and financial policy tools.
• The study’s conclusions are the basis of an ongoing policy dialogue with IMF member countries, standard-setters in the financial area, and academia.
• The paper is part of the policy development work conducted by the IMF’s Monetary and Financial Systems Department.

Key findings and themes

• Highly dollarized economies face constraints on standard monetary and financial policy tools that affect prudential supervision.
• The analysis emphasizes implications for bank deposits, banking systems, currency management, exchange rates, foreign exchange operations, monetary policy, and real exchange rates.
• The work is intended to inform policy design and supervisory practices in dollarized environments.

Policy implications and dialogue

• Conclusions inform an ongoing policy dialogue with:
  • IMF member countries
  • Standard-setters in the financial area
  • Academia
• The paper contributes to policy development within the IMF’s Monetary and Financial Systems Department.

Content in this bundle

• Financial Stability in Dollarized Economies
  • Financial Stability in Dollarized Economies (Markdown version)
  • Financial Stability in Dollarized Economies (PDF)