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Calvo, Guillermo.

Currency Substitution in Developing Countries An Introduction / Guillermo Calvo. [electronic resource] : Guillermo Calvo. - Washington, D.C. : International Monetary Fund, 1992. - 1 online resource (32 p.) - IMF Working Papers; Working Paper ; No. 92/40 . - IMF Working Papers; Working Paper ; No. 92/40 .

This paper reviews the main policy and analytical issues related to currency substitution in developing countries. The paper discusses, first, whether currency substitution should be encouraged or not; second, how the presence of currency substitution affects the choice of nominal anchors in inflation stabilization programs; third, the effects of changes in the rate of growth of the money supply on the real exchange rate; fourth, the interaction between inflationary finance and currency substitution; and, finally, issues related to the empirical verification of the currency substitution hypothesis.

ISBN: 145184588X : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451845884.001 doi

Subjects--Topical Terms:
Exchange Rate
Foreign Currency
Inflation Tax

Subjects--Geographic Terms:
Argentina
Bolivia
Mexico
Peru
Uruguay