Financial Dollarization : The Policy Agenda

This volume provides a rigorous and balanced perspective on the causes and implications of dollarization, and the basic policies and options to deal with it: the adaptation of the monetary and prudential frameworks, the development of local-currency substitutes, and the scope for limiting dollarization through administrative restrictions.

Preface; O.Dancourt & S.Ingves Introduction; A.Armas, A.Ize & E.Levy-Yeyati PART I: FINANCIAL DOLLARIZATION: ROOTS AND DYNAMICS Financial Dollarization Equalibria: A Framework for Policy Analysis; A.Ize Comments on Chapter 2; O.Jeanne Financial De-dollarization: Is it for Real? A.Ize & E.Levy-Yeyati Comments on Chapter 3; R.Chang Financial Dollarization in Latin America; R.Rennhack & M.Nozaki Comments on Chapter 4; K.Cowan PART II: MONETARY AND EXCHANGE RATE MANAGEMENT Exchange Rate and Monetary Management in a Partially Dollarized Economy; L.Leiderman, R.Maino & E.Parrado Targeting Inflation in a Dollarized Economy: The Peruvian Experience; A.Armas & F.Grippa Discussants; K.Schmidt-Hebbel PART III: PRUDENTIAL MANAGEMENT Controlling Currency Mismatches in Emerging Economies; P.Turner Prudential Management in a Partially Dollarized Economy: Toward Internationally Accepted Best Practices; J.Cayazzo, A.I.G.Pascual, E.Gutierrez & S.Heysen Managing Systematic Liquidity Risk in a Dollarized Economy; A.Ize, M.Kiguel & E.Levy-Yeyati To Hell and Back: Crisis Management in a Dollarized Economy: The Case of Uruguay; J.de Brun & G.Licandro Discussant; P.Turner PART IV: PROMOTING THE LOCAL CURRENCY Can Indexed Debt Absolve Original Sin? Going Indexed or is Self-Flagellation Needed? A.Holland & C.Mulder De-dollarizing: The Gentle Way or the Hard Way? D.C.Hardy & C.Pazarbasioglu Discussants; A.de La Torre, L.Oscar Herrera & C.Irigoyen PART V: THE ROUTE AHEAD Summary of Round Table Discussion; A.Carstens, F.de Paula Gutierrez, L.Leiderman, J.A.Morales, M.Rodlauer & R.Rossini