Dollarization persistence and individual heterogeneity

Diego Winkelried, Paul Castillo

Resultado de la investigación: Contribución a una revistaArtículo de revista revisión exhaustiva

6 Citas (Scopus)

Resumen

A salient feature of financial dollarization, arguably the one that causes most concern to policymakers, is its persistence: even after successful macroeconomic stabilizations, dollarization ratios often remain high. In this paper we argue that this persistence is connected to the fact that the participants in the dollar deposit market are fairly heterogenous, and so is the way they form their optimal currency portfolio. We develop a simple model when agents differ in their ability to process information, which turns out to be enough to generate persistence upon aggregation. We provide empirical evidence that is consistent with this claim.
Idioma originalInglés
Páginas (desde-hasta)1596-1618
Número de páginas23
PublicaciónJournal of International Money and Finance
Volumen29
N.º8
DOI
EstadoPublicada - 1 dic. 2010

Palabras clave

  • Aggregation
  • Dollarization
  • Individual heterogeneity
  • Persistence

Huella

Profundice en los temas de investigación de 'Dollarization persistence and individual heterogeneity'. En conjunto forman una huella única.

Citar esto