| | | Document Type | : | Latin Dissertation | | Language of Document | : | English | | Record Number | : | 53561 | | Doc. No | : | TL23515 | | Call number | : | 3265392 | | Main Entry | : | Ceyda Oner | | Title & Author | : | Essays on dollarizationCeyda Oner | | College | : | University of Washington | | Date | : | 2007 | | Degree | : | Ph.D. | | student score | : | 2007 | | Page No | : | 75 | | Abstract | : | This dissertation explores the reasons behind dollarization hysteresis and analyzes the extent and dynamics of dollarization in different economies. It finds role for policies to reduce dollarization to achieve a more stable economy. The first chapter uses a network externality model to explain dollarization hysteresis. A two-currency model is presented where money is held for its ability to reduce transaction costs, which depends on the aggregate experience and the users' network for the foreign currency. We find evidence from the Turkish economy that network externalities when proxied by peaks in the dollarization rate help explain hysteresis in dollarization. The estimation results imply that reversing dollarization is possible by making domestic currency denominated deposit interest rates higher than comparable assets. The second chapter analyzes the stability properties of the exchange rate under parallel genetic algorithms when money supplies are constant and currencies are imperfect substitutes. The equilibrium exchange rates and portfolio choices are shown to become more stable as currencies become less substitutable. Consumption is shown to be neutral to different restrictions and portfolio choices. | | Subject | : | Social sciences; Currency substitution; Dollarization; Exchange rate; Inflation; Economics; Finance; Essays; Economic models; Currency; Transaction costs; Interest rates; Foreign exchange rates; Money supply; Studies; 0508:Finance; 0501:Economics | | Added Entry | : | S. Turnovsky | | Added Entry | : | University of Washington |
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http://lib.clisel.com/site/catalogue/53561
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