TY  - BOOK
AU  - Barajas,Adolfo
AU  - Méndez Morales,Armando
TI  - Dollarization of Liabilities: Beyond the Usual Suspects 
T2  - IMF Working Papers; Working Paper
SN  - 1451842805 :
SN  - 1018-5941
PY  - 2003///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Bank Intervention
KW  - imf
KW  - Banking
KW  - Deposit Insurance
KW  - Exchange Rate
KW  - Financial Markets and the Macroeconomy
KW  - Foreign Currency
KW  - Bolivia
KW  - Chile
KW  - Dominican Republic
KW  - El Salvador
N2  - Dollarization of liabilities (DL) has emerged as a key factor in explaining the vulnerability of emerging markets to financial and currency crises. "Usual suspects" of causing DL comprise "fatalistic" determinants such as a long history of unsound macroeconomic policies and development and institutional factors, aided by moral hazard opportunities related to government guarantees. This paper assesses empirically the relevance of these factors relative to alternative explanations. 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 in explaining DL
UR  - http://elibrary.imf.org/view/IMF001/01855-9781451842807/01855-9781451842807/01855-9781451842807.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451842807
ER  -