Series: IMF Working Papers
Author(s): Robert Rennhack , and Masahiro Nozaki
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2006
Keywords: foreign currency, exchange rate, inflation, exchange rate flexibility, real exchange rate, Monetary Policy, Central Banking, and the Supply of Money and Credit: General, Financial Institutions and Services: General,
This paper tests several explanations for financial dollarization (FD), with an emphasis on Latin America. The results provide evidence that FD is a rational response to inflation uncertainty. The paper builds on p...