Dollarization and Euroization in Transition Countries: Currency Substitution, Asset Substitution, Network Externalities and Irreversibility
AbstractWe examine the extent, causes and consequences of transition countries’ use of foreign currency as a co-circulating medium of exchange and store of value. Using new estimates of foreign cash in circulation, we obtain unique measures of currency substitution, asset substitution, and dollarization, and examine the consequences of network externalities for hysteresis and irreversibility. Finally, we examine factors leading some transition countries to euroize officially and bilaterally, and others to euroize unilaterally - that is, without prior sanction by the EMU.
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Bibliographic InfoPaper provided by EconWPA in its series International Finance with number 0205003.
Length: 27 pages
Date of creation: 10 May 2002
Date of revision:
Note: Type of Document - PDF; prepared on IBM PC ; to print on HP/PostScript; pages: 27 ; figures: included. Presented at the Fordham University International Conference on “Euro and Dollarization: Forms of Monetary Union in Integrating Regions” April 5 - 6, 2002, New York
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dollarization; euroization; transition economies; currency substitution; asset substitution; foreign currency; network externalities; irreversibility; underground economy;
Find related papers by JEL classification:
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- F3 - International Economics - - International Finance
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-13 (All new papers)
- NEP-IFN-2002-06-13 (International Finance)
- NEP-LAW-2002-06-13 (Law & Economics)
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- Islandczycy chcÄ
zamieniÄ koronÄ na nicponia
by k.mokrzycka in Obserwator Finansowy on 2012-04-07 04:00:19
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