Dollarization of Liabilities: Beyond the Usual Suspects
| Autor: | Adolfo Barajas, Armando Méndez Morales |
|---|---|
| Rok vydání: | 2003 |
| Předmět: |
Moral hazard
Vulnerability Monetary economics International economics Models with Panel Data Financial Markets and the Macroeconomy International Lending and Debt Problems [Dollarization Credit Foreign exchange panel data exchange rate foreign currency banking deposit insurance bank intervention Multiple or Simultaneous Equation Models] Exchange rate Currency Economics General Earth and Planetary Sciences Deposit insurance Business Market power Emerging markets Foreign exchange market General Environmental Science Panel data |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3923426 |
| Popis: | Dollarization of liabilities (DL) has emerged as a key factor in explaining the vulnerability of emerging markets to financial and currency crises. The "usual suspects" of causing DL include fatalistic determinants such as a long history of unsound macroeconomic policies, financial development and institutional factors, aided by moral hazard opportunities arising from the existence of government guarantees. This paper assesses empirically the relevance of these factors, as well as that of alternative explanations for DL. Based on a sample of Latin American countries, we find that ongoing central bank intervention in the foreign exchange market, relative market power of borrowers, and financial penetration are at least as important as the usual suspects in explaining DL. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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