Monetary Policy in Dollarized Economies
March 15, 1999
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Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.
Subject: Commercial banks, Currencies, Dollarization, Financial institutions, Monetary base, Monetary policy, Money, Reserve requirements
Keywords: asset, asset substitution, benefits of dollarization, Commercial banks, Currencies, currency, Dollarization, dollarized economy, Eastern Europe, FCD, foreign currency, IMF staff country report, inflation stabilization, Monetary base, OP, Reserve requirements, sound financial market environment
Pages:
50
Volume:
1999
DOI:
Issue:
003
Series:
Occasional Paper No. 1999/003
Stock No:
S171EA0000000
ISBN:
9781557757579
ISSN:
0251-6365
