Advanced Search
MyIDEAS: Login to save this article or follow this journal

Determinants of Currency Substitution/Dollarization – The Case of the Republic of Serbia

Contents:

Author Info

  • Ivan Milenković

    ()
    (University of Priština, Faculty of Economics Kosovska Mitrovica, Associate Professor; and University of Novi Sad,Faculty of Economics Subotica, Assistant Professor)

  • Milivoje Davidović

    ()
    (University of Novi Sad,Faculty of Economics Subotica, Teaching Assistant)

Registered author(s):

    Abstract

    Currency substitution/dollarization is a serious limiting factor for effective monetary policy, especially in transition economies. In addition, there is a negative impact of currency substitution on the banking industry, which is visible in the eroding quality of its lending due to indexation in debts of firms and individuals in foreign currency. Therefore, this paper analyzes the particular relevance of a currency substitution/dollarization phenomenon(s) in the case of the Republic of Serbia. We initially discuss various approaches and definitions of currency substitution and dollarization that found in the literature. Subsequently, we discuss the role of currency substitution in small and open economies in transition with some illustrations relating to the Republic of Serbia - we distinguish and analyze a locally and globally substituting currency from the substituted one and the consequences of euroization.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.cbcg.me/repec/cbk/journl/vol2no1-7.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Central bank of Montenegro in its journal Journal of Central banking Theory and Practice.

    Volume (Year): 2 (2013)
    Issue (Month): 1 ()
    Pages: 139-155

    as in new window
    Handle: RePEc:cbk:journl:v:2:y:2013:i:1:p:139-155

    Contact details of provider:
    Postal: Bulevar Svetog Petra Cetinjskog br. 6, 81000 Podgorica
    Phone: +382 20 403 136
    Fax: +382 20 664 029
    Email:
    Web page: http://www.cbcg.me/eng/index.php?bl=journal
    More information through EDIRC

    Related research

    Keywords: currency substitution; dollarization; Serbia;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Silvana Tenreyro & Robert J. Barro, 2002. "Economic effects of currency unions," Working Papers 02-4, Federal Reserve Bank of Boston.
    2. Stephanie Schmitt-Grohe & Martin Uribe, 2000. "Stabilization Policy and the Costs of Dollarization," Departmental Working Papers 200006, Rutgers University, Department of Economics.
    3. Miguel Lebre de Freitas, 2004. "Currency Substitution, Portfolio Diversification and Money Demand," Econometric Society 2004 Latin American Meetings 263, Econometric Society.
    4. Cavalcanti, Ricardo de O & Wallace, Neil, 1999. "Inside and Outside Money as Alternative Media of Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(3), pages 443-57, August.
    5. Barro, Robert & Alesina, Alberto, 2002. "Currency Unions," Scholarly Articles 4551795, Harvard University Department of Economics.
    6. Selcuk, Faruk, 2003. "Currency substitution: new evidence from emerging economies," Economics Letters, Elsevier, vol. 78(2), pages 219-224, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cbk:journl:v:2:y:2013:i:1:p:139-155. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.