This section first reviews how monetary policy implementation and payments system arrangements have been adjusted in light of heavy dollarization and then discusses the implications of dollarization for prudential regulation and effective bank supervision, and the central bank’s role of lender of last resort.
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Bordo, M., and E. Choudri, 1982, “Currency Substitution and Demand for Money: Some Empirical Evidence for Canada,” Journal of Money, Credit and Banking, Vol. 14, pp. 48–57.
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Calvo, Guillermo, and Carlos Végh, 1996, “From Currency Substitution to Dollarization and Beyond: Analytical and Policy Issues,”in Guillermo Calvo, Money, Exchange Rates, and Output (Cambridge, Massachusetts: MIT Press), pp. 153–75.
Clements, Benedict, and Gerard Schwartz, 1993, “Currency Substitution: The Recent Experience of Bolivia,” World Development, Vol. 21, pp. 1883–93.
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Estrella, Arturo, and Frederic Mishkin, 1996, “Is There a Role for Monetary Aggregates in the Conduct of Monetary Policy?” NBER Working Paper 5845 (Cambridge, Massachusetts: National Bureau of Economic Research).
Feldstein, Martin, and James H. Stock, 1994, “The Use of Monetary Aggregates to Target Nominal GDP,” in N. Gregory Mankiw, ed., Monetary Policy (Chicago: University of Chicago Press).
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Garber, Peter, 1996, “Managing Risks to Financial Markets from Volatile Capital Flows: The Role of Prudential Regulation,” International Journal of Finance and Economics, Vol. 1, pp. 183–95.
García, Márcio, 1996, “Avoiding Some Costs of Inflation and Crawling Toward Hyperinflation: The Case of the Brazilian Domestic Currency Substitute,” Journal of Development Economics, Vol. 51, pp. 139–59.
García-Herrero, Alicia, 1997, “Banking Crisis in Latin America in the 1990s: Lessons from Argentina, Paraguay, and Venezuela,” Working Paper 97/140 (Washington: IMF).
Giovannini, Albertoand Bart Turtelboom, 1994, “Currency Substitution,” in F. van der Ploeg, ed., Handbook of International Macroeconomics (Cambridge, Massachusetts: Blackwell).
Girton, Lance, and Don Roper, 1981, “Theory and Implications of Currency Substitution,” Journal of Money, Credit and Banking, Vol. 13, pp. 12–30.
Guidotti, Pablo, and Carlos Rodríguez, 1992, “Dollarization in Latin America: Gresham’s Law in Reverse?” Staff Papers, IMF, Vol. 39, pp. 518–44.
Gulde, Anne Marie, Jean Claude Nascimento, and Lorena Zamalloa, 1997, “Liquid Asset Ratios and Financial Sector Reform,” Working Paper 97/144 (Washington: IMF).
Kamin, Steven, and Neil Ericsson, 1993, “Dollarization in Argentina,” International Finance Discussion Papers, No. 460 (Washington: Board of Governors of the Federal Reserve System).
Kiguel, Miguel, and Nissan Liviatan, 1994, “Exchange-Rate-Based Stabilization in Argentina and Chile: A Fresh Look,” World Bank Policy Research Working Paper 1318 (Washington: World Bank).
Kochhar, Kalpana, 1996, “The Definition of Reserve Money: Does It Matter for Financial Programs?” Paper on Policy Analysis and Assessment 96/9 (Washington: IMF).
McKinnon, Ronald I., 1996, “Direct and Indirect Concepts of International Currency Substitution” in Paul Mizenand Eric J. Pentecost, eds., The Macroeconomics of International Currencies: Theory, Policy, and Evidence (Gloucestershire, U.K.: Edward Elgar), pp. 44–59.
Miles, M.A., 1978, “Currency Substitution, Flexible Exchange Rates, and Monetary Independence,” American Economic Review, Vol. 68, pp. 428–36.
Monetary and Exchange Affairs Department, IMF 1995, “Reserve Requirements on Foreign Currency Deposits,” MAE Operational Paper 95/1 (Washington).
Mueller, Johannes, 1994, “Dollarization in Lebanon,” Working Paper 94/129 (Washington: IMF).
Obstfeld, Maurice, and Kenneth Rogoff, 1996, Foundations of International Macroeconomics (Cambridge, Massachusetts: MIT Press).
Porter, Richard, and Ruth Judson, 1996, “The Location of U.S. Currency: How Much Is Abroad?” Federal Reserve Bulletin, Vol. 82, pp. 883–903.
Sahay, Ratna, and Carlos A. Végh, 1996, “Dollarization in Transition Economies: Evidence and Policy Implications,” in Paul Mizenand Eric J. Pentecost, eds., The Macroeconomics of International Currencies: Theory, Policy, and Evidence (Gloucestershire, U.K.: Edward Elgar), pp. 195–224.
Savastano, M. A., 1992, “The Pattern of Currency Substitution in Latin America: An Overview,” Revista de Análisis Económico, Vol. 7, pp. 29–72.
Savastano, M. A., 1996, “Dollarization in Latin America: Recent Evidence and Policy Issues,” in Paul Mizenand Eric J. Pentecost, eds., The Macroeconomics of International Currencies: Theory, Policy, and Evidence (Gloucestershire, U.K.: Edward Elgar), pp. 225–55.
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