Dollarization in Transition Economies: New Evidence from Georgia
AbstractThis paper provides new evidence for dollarization in Georgia during the period from 1996 to 2007 using implications of dynamic money-in-utility-function models. Partial effects of foreign and domestic inflation, exchange rate, and foreign and domestic currency deposits’ interest rates on dollarization are considered. The US dollar is a strong substitute for domestic currency and has a significant share in producing domestic liquidity services. The actual dollarization in Georgia is persistent and larger than partial effects models predict.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp366.
Date of creation: Sep 2008
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More information through EDIRC
Dollarization; Georgia; Money-in-utility-function;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- F31 - International Economics - - International Finance - - - Foreign Exchange
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-21 (All new papers)
- NEP-CBA-2008-12-21 (Central Banking)
- NEP-IFN-2008-12-21 (International Finance)
- NEP-MAC-2008-12-21 (Macroeconomics)
- NEP-MON-2008-12-21 (Monetary Economics)
- NEP-TRA-2008-12-21 (Transition Economics)
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