Hidden Bibliographic Details
| Other authors / contributors: | Rebucci, Alessandro.
International Monetary Fund. Policy Development and Review Department.
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| ISBN: | 1451892780
9781451892789
1281606731
9781281606730
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| Notes: | Includes bibliographical references (pages 39-40).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | We compare the performance of a currency board, inflation targeting, and dollarization in a small, open developing economy with a liberalized capital account. We focus on the transmission of shocks to currency and country risk premia and on the role of fluctuations in premia in the propagation of other shocks. We calibrate our model on Argentina. The framework matches the second moments of key variables well. Welfare analysis suggests that dollarization is preferable to alternative regimes because it removes currency premium volatility. However, a currency board can match dollarization on welfare grounds if the central bank holds a sufficiently large stock of foreign reserves.
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| Other form: | Print version: Ghironi, Fabio. Monetary rules for emerging market economies. [Washington, D.C.] : International Monetary Fund, ©2002
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| Standard no.: | 10.5089/9781451892789.001
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