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Exchange Rate Policy and Liability Dollarization :, An Empirical Study, Pelin Berkmen, Eduardo Cavallo

Contributor
Abstract
The paper identifies the contemporaneous relationship between exchange rate policy and liability dollarization using three different definitions of dollarization. The presence of endogeneity makes the empirical identification elusive. We use identification through heteroskedasticity to solve the endogeneity problem in the present context (Rigobon, 2003). While we find that countries with high liability dollarization (external, public, or financial) tend to be more actively involved in exchange rate stabilization operations, we do not find evidence that floating, by itself, promotes de-dollarization
Table Of Contents
Contents; I. Introduction; II. Data Description; III. Structural Equations; IV. Estimation; V. Results; VI. Robustness Checks; VII. Conclusions; VIII. References; Appendix I. Country List; Appendix II. List of Variables, Abbreviations and Data Sources
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (49 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462375011

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