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Smuggling, Currency Substitution and Unofficial Dollarization [electronic resource] : A Crime-Theoretic Approach, Mourmouras, Alex.

Author/Creator:
Mourmouras, Alex.
Publication:
Washington, D.C. : International Monetary Fund, 2000.
Format/Description:
Government document
Book
1 online resource (44 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 00/176.
IMF Working Papers; Working Paper No. 00/176
Status/Location:
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Local subjects:
Aggregate demand. (search)
Black market. (search)
Currency substitution. (search)
Difference equation. (search)
Dollarization. (search)
Equation. (search)
Equations. (search)
Foreign currency. (search)
Foreign exchange. (search)
Inflation. (search)
Macroeconomic analysis. (search)
Monetary economics. (search)
Monetary policy. (search)
Money supply. (search)
Optimization. (search)
Price level. (search)
Probability. (search)
Quantity theory. (search)
Rate of inflation. (search)
Real money. (search)
Real value. (search)
Smuggling. (search)
Terms of trade. (search)
Time series. (search)
Argentina. (search)
Germany. (search)
Mexico. (search)
Summary:
Large stocks of U.S. dollars and other hard currencies circulate in the transition economies, in Latin America, and in other countries that have experienced macroeconomic mismanagement. Using a monetary model that combines the legal restrictions and crime-theoretic traditions, this paper demonstrates how leaky exchange controls lead to currency substitution and progressive dollarization. The paper also analyzes the impact of dollarization on the ability of governments to earn seigniorage, the dynamics of dollarization in a growing economy, and the central role of expectations—specifically, confidence in the domestic currency—in determining the extent of dollarization and, potentially, in reversing it.
Notes:
Description based on print version record.
Contributor:
Mourmouras, Alex.
Russell, Steven.
Other format:
Print Version:
ISBN:
1451858809:
9781451858808
ISSN:
1018-5941
Publisher Number:
10.5089/9781451858808.001
Access Restriction:
Restricted for use by site license.