Front Matter Page
African Department
Authorized for distribution by Francesco Caramazza
Content
I. Introduction
II. Characteristics of Eurorization/Dollarization Countries
III. Potential Benefits and Costs of Eurorization for Cape Verde
IV. Econometric Analysis of the Characteristics of Dollarized Economies
A. Determinants of Exchange Rate Choice
B. Data
C. Estimation
V. Practical Aspects of Successful Eurorization
VI. Conclusion
References
Figures
1. Debt With and Without Access to Seignorage Revenue, 2008-28
2. Growth Effect of Euroriztion is Temporary, not Permanent
Boxes
1. Loss of Seignorage Revenue: Theory and Evidence
2. Some Practical Aspects of Introducing the Euro
Tables
1. List of Dollarized Economies
2. Present Value Loss of Seignorage Revenue (as a share of GDP)
3. Seignorage Gains for CEECs
4. Comparing Merits of Different Fixed Exchange Rate Regimes with Cape Verde Current Peg
5. Choice of Exchange Rate Regime (Dollarized Economies)
6. Choice of Exchange Rate Regime (Hard Pegs)
7. Choice of Exchange Rate Regime (Dollarized, Other Hard Pegs and Non-Hard Pegs)
Appendix
1. History of Cape Verdean Exchange Rate Arrangements