Summary: Financial unofficial dollarization is widely seen as a critical source of financial fragility in both developing and emerging economies. He is the Dean of the School of Government at , where he also directs its Center for Evidence-based Policy. Macmillan ® is a registered trademark in the United States, United Kingdom and other countries. Turner -- Prudential Management in a Partially Dollarized Economy: Toward Internationally Accepted Best Practices; J. Luis Óscar Herrera is Director of the Financial Policy Department at the Central Bank of Chile. Attempts to reign in dollarization through more aggressive methods, both in the region and outside the region, are also worth looking into.
Currently one of the most topical issues in the developing world, it has spurred in recent years a body of analytical and empirical work that has shifted the debate towards a more proactive de-dollarization agenda that is already informing policy decisions in many developing economies. Socorro Heysen is Deputy Division Chief of the Monetary and Financial Systems Department of the International Monetary Fund. Levy-Yeyati -- To Hell and Back: Crisis Management in a Dollarized Economy: The Case of Uruguay; J. Óscar Dancourt is Acting Governor at the Central Reserve Bank of Peru. The chapters in this volume do not pretend to have all the policy answers to an inherently complex and multifaceted phenomenon. Developing countries — Economic policy. In other cases, the preferable policy may be to promote dollar substitutes, such as price-indexed instruments, until the local currency is better able to compete head to head with the dollar.
In some cases, the policy agenda may need to limit its focus to living with dollarization and containing its risks. Levy-Yeyati To Hell and Back: Crisis Management in a Dollarized Economy: The Case of Uruguay; J. Eric Parrado is Advisor at the Financial Policy Division of the Central Bank of Chile. 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. Claudio Irigoyen is Chief Economist at the Central Reserve Bank of Argentina. Going Indexed or is Self-Flagellation Needed? Notwithstanding declining, and often quite low, rates of inflation, de facto dollarization has continued to rise or failed to decline in most regions of the world, most particularly in Latin America.
Eva Gutierrez is Economist for the Policy Review Department of the International Monetary Fund. Klaus Schmidt-Hebbel is Chief of Economic Research at the Central Bank of Chile and Professor at the Catholic University of Chile. Turner Prudential Management in a Partially Dollarized Economy: Toward Internationally Accepted Best Practices; J. The conference brought together practitioners, policy-makers and academics who, through research or work in the field, have had a first-hand opportunity to think about the root causes of dollarization and its policy implications. Together with a greater awareness of the need for policy reform, fully grasping the intricacies of the phenomenon at hand is, of course, a key prerequisite for policy action. Currency question — Developing countries. He was also honorary President of the Board of , an Argentina-based policy think tank 2013-2016 , senior research fellow for the 2005—2006 , senior fellow at , and guest professor at the ,.
He was an economist at the from 1995 to 1998, professor at since 1999, where he helped found and directed the Center for Financial Research from 1999 to 2007, Chief Economist at the in 2002, Senior Financial Sector Adviser for Latin America and the Caribbean at from 2006 to 2007, and Head of Emerging Markets Strategy and Latin American Research at from 2007 to 2010. His writes regularly for and , and for local newspapers and. Last but not least, there has been substantial progress in the academic literature on dollarization in recent years, both of a theoretical and empirical nature, that helps understand the root causes of dollarization and its linkages with monetary and prudential policies. Financial Dollarization Ize Alain Levy Yeyati Eduardo Armas Adrian can be very useful guide, and financial dollarization ize alain levy yeyati eduardo armas adrian play an important role in your products. The range of policy responses to dollarization and its underlying causes has been quite varied, increasingly proactive and, in many cases, seemingly successful. Several countries in the region have also recently reviewed or are in the process of reviewing their prudential framework to better assess and internalize the risks of intermediating in foreign currency.
Conversely, periodic exchange rate realignments in inflation-prone peg countries reflected a more inconsistent with flexible exchange rate arrangements. Parrado -- Targeting Inflation in a Dollarized Economy: The Peruvian Experience; A. In Spanish, he has published two essays on Argentina's recent political and economic history, one on the 2002 crisis and its aftermath with the historian Diego Valenzuela La resurrección: La historia de la poscrisis Argentina, 2007, Ed. Eduardo Levy Yeyati is Professor and Director of the Center for Financial Research at the Business School of the Torcuato Di Telia University and Research Associate at the Research Department of the Inter-American Development Bank. Allison Holland is Debt Management Advisor for the Monetary and Financial Systems Department of the International Monetary Fund. 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.
Comparing notes on such experiences and sharing lessons is indeed a key objective of this book. Robert Rennhack is Division Chief of the Western Hemisphere Department at the International Monetary Fund. Chang Financial Dollarization in Latin America; R. Palgrave is a registered trademark in the European Union and other countries. Agustín Carstens is Deputy Managing Director at the International Monetary Fund. He was the Director of the Monetary and Financial Systems Department at the time of the April 2005 Lima conference.
Philip Turner is Head of the Secretariat Group at the Monetary and Economic Department of the Bank for International Settlements. The time appears to be ripe for an in-depth review of the policy implications of financial dollarization. Together with , he prepared a popular classification of de facto , and contributed the monetary and exchange rate policy chapter of the last edition of the. Leonardo Leiderman is Professor at the Berglas School of Economics at Tel Aviv University, Israel. The E-mail message field is required.
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. The problem is that once you have gotten your nifty new product, the financial dollarization ize alain levy yeyati eduardo armas adrian gets a brief glance, maybe a once over, but it often tends to get discarded or lost with the original packaging. The experience of the few countries like Israel that have largely de-dollarized based on good and persistent monetary management provides, of course, a key point of reference. Renzo Rossini is General Manager of the Central Reserve Bank of Peru. We are most indebted to Magally Bernal for her untiring and excellent assistance in preparing the conference, putting together the volume and, more generally, making sure that all loose ends were taken care of.