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Currency substitution and the real exchange rate: the utility maximization approach


  • Calvo, Guillermo A.


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  • Calvo, Guillermo A., 1985. "Currency substitution and the real exchange rate: the utility maximization approach," Journal of International Money and Finance, Elsevier, vol. 4(2), pages 175-188, June.
  • Handle: RePEc:eee:jimfin:v:4:y:1985:i:2:p:175-188

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    References listed on IDEAS

    1. Nichols, Alan, 1969. "On the Social Rate of Discount: Comment," American Economic Review, American Economic Association, vol. 59(5), pages 909-911, December.
    2. Jeffrey Sachs & Daniel Cohen, 1982. "LDC Borrowing with Default Risk," NBER Working Papers 0925, National Bureau of Economic Research, Inc.
    3. Sandmo, Agnar & Dreze, Jacques H, 1971. "Discount Rates for Public Investment in Closed and Open Economies," Economica, London School of Economics and Political Science, vol. 38(152), pages 395-412, November.
    4. repec:ags:ucdavw:225633 is not listed on IDEAS
    5. Eduardo Morán & Gert Wagner, 1974. "Estimación de la Tasa de Retorno del Capital," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 11(34), pages 22-32.
    6. Somers, Harold M, 1971. "On the Demise of the Social Discount Rate," Journal of Finance, American Finance Association, vol. 26(2), pages 565-578, May.
    7. Hanson, James A, 1974. "Optimal International Borrowing and Lending," American Economic Review, American Economic Association, vol. 64(4), pages 616-630, September.
    8. Sjaastad, Larry A & Wisecarver, Daniel L, 1977. "The Social Cost of Public Finance," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 513-547, June.
    9. Feder, Gershon & Just, Richard E., 1977. "An analysis of credit terms in the eurodollar market," European Economic Review, Elsevier, vol. 9(2), pages 221-243.
    10. Feder, Gershon & Ross, Knud Z, 1982. " Risk Assessments and Risk Premiums in the Eurodollar Market," Journal of Finance, American Finance Association, vol. 37(3), pages 679-691, June.
    11. Usher, Dan, 1969. "On the Social Rate of Discount: Comment," American Economic Review, American Economic Association, vol. 59(5), pages 925-929, December.
    12. Peter G. Warr & Brian D. Wright, 1981. "The Isolation Paradox and the Discount Rate for Benefit-Cost Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 96(1), pages 129-145.
    13. Findlay, Ronald & Wellisz, Stanislaw, 1976. "Project Evaluation, Shadow Prices, and Trade Policy," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 543-552, June.
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    Cited by:

    1. Sturzenegger, Federico A, 1994. "Hyperinflation with Currency Substitution: Introducing an Indexed Currency," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(3), pages 377-395, August.
    2. Ogawa, Eiji & Sasaki, Yuri Nagataki, 1998. "Inertia in the key currency," Japan and the World Economy, Elsevier, vol. 10(4), pages 421-439, October.
    3. H. Murat Ozbilgin, 2010. "Welfare Gains from Disinflation in an Economy With Currency Substitution (Para Ikamesinin Oldugu Bir Ekonomide Enflasyonun Dusurulmesinden Kaynaklanan Refah Kazanimlari)," Working Papers 1009, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    4. Kazimierz Stanczak, 1992. "Competing Monies and the Big Polish Inflation of 1989," UCLA Economics Working Papers 682, UCLA Department of Economics.
    5. Franke, Günter, 1988. "Currency choice for credit contracts and exchange rate regime," Discussion Papers, Series II 62, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    6. Michael Melvin & Bettina Peiers, 1996. "Dollarization In Developing Countries: Rational Remedy Or Domestic Dilemma?," Contemporary Economic Policy, Western Economic Association International, vol. 14(3), pages 30-40, July.
    7. Özbilgin, Murat H., 2012. "Currency substitution, inflation, and welfare," Journal of Development Economics, Elsevier, vol. 99(2), pages 358-369.
    8. Charles Engel, 1987. "The Real Effects of Foreign Inflation in the Presence of Currency Substitution," NBER Working Papers 2140, National Bureau of Economic Research, Inc.
    9. Arrau, Patricio, 1990. "Intertemporal substitution in a monetary framework : evidence from Chile and Mexico," Policy Research Working Paper Series 549, The World Bank.
    10. Dorsainvil, Kathleen, 2001. "The parallel market as a policy instrument in collapsing exchange rate regimes," Journal of Economics and Business, Elsevier, vol. 53(1), pages 27-43.
    11. Pang, Xiaobo & Huang, Weiting, 2005. "货币替代中的价值效应与网络效应
      [Value effect and network effect in the process of currency substitution]
      ," MPRA Paper 11627, University Library of Munich, Germany, revised May 2007.
    12. van Aarle, B. & Budina, N., 1995. "Currency substitution in Eastern Europe," Discussion Paper 1995-2, Tilburg University, Center for Economic Research.
    13. OGAWA Eiji & MUTO Makoto, 2017. "Declining Japanese Yen and Inertia of the U.S. Dollar," Discussion papers 17018, Research Institute of Economy, Trade and Industry (RIETI).
    14. Holanda, Marcos C., 1996. "Inflation, indexation, and the black market dollar," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 50(1), January.
    15. Alberto Giovannini & Bart Turtelboom, 1992. "Currency Substitution," NBER Working Papers 4232, National Bureau of Economic Research, Inc.
    16. OGAWA Eiji & MUTO Makoto, 2016. "Inertia of the U.S. Dollar as a Key Currency through the Two Crises," Discussion papers 16038, Research Institute of Economy, Trade and Industry (RIETI).
    17. Chang, Wen-ya & Tsai, Hsueh-fang & Lai, Ching-chong, 2002. "Anticipated foreign military threat, arms accumulation, and the current account in a small open economy," Journal of International Money and Finance, Elsevier, vol. 21(7), pages 1035-1052, December.
    18. Sturzenegger, Federico, 1997. "Understanding the welfare implications of currency substitution," Journal of Economic Dynamics and Control, Elsevier, vol. 21(2-3), pages 391-416.
    19. Federico A. Sturzenegger, 1992. "Currency Substitution and the Regressivity of Inflationary Taxation," UCLA Economics Working Papers 656, UCLA Department of Economics.
    20. Federico A. Sturzenegger, 1992. "Inflation and Social Welfare in a Model with Endogenous Financial Adaptation," UCLA Economics Working Papers 658, UCLA Department of Economics.
    21. Kem Reat Viseth, 2001. "Currency Substitution and Financial Sector Developments in Cambodia," International and Development Economics Working Papers idec01-4, International and Development Economics.
    22. Fridman Alla & Verbetsky Aleksey, 2001. "Currency Substitution in Russia," EERC Working Paper Series 01-05e, EERC Research Network, Russia and CIS.

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