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The Resource Official dollarization as a monetary regime : its effects on El Salvador, Andrew Swiston

Official dollarization as a monetary regime : its effects on El Salvador, Andrew Swiston

Label
Official dollarization as a monetary regime : its effects on El Salvador
Title
Official dollarization as a monetary regime
Title remainder
its effects on El Salvador
Statement of responsibility
Andrew Swiston
Creator
Contributor
Author
Issuing body
Subject
Genre
Language
eng
Summary
This paper examines El Salvadors transition to official dollarization by comparing aspects of this regime to the fixed exchange rate regime prevailing in the 1990s. Commercial bank interest rates are analyzed under an uncovered interest parity framework, and it is found that dollarization lowered rates by 4 to 5 percent by reducing currency risk. This has generated net annual savings averaging 1/4 percent of GDP for the private sector and 1/2 percent of GDP for the public sector (net of the losses from foregone seigniorage). Estimated Taylor rules show a strong positive association between Salvadoran output and U.S. Federal Reserve policy since dollarization, implying that this policy has served to stabilize economic activity more than it did under the peg and more than policy rates in Central American countries with independent monetary policy have done. Dollarization does not appear to have affected the transmission mechanism, as pass-through of monetary policy to commercial interest rates has been similar to pass-through under the peg and in the rest of Central America
Member of
Cataloging source
DJB
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Swiston, A.
Government publication
international or intergovernmental publication
Illustrations
illustrations
Index
no index present
Language note
English
LC call number
  • HG3881.5.I58
  • HG735
LC item number
  • W67 No. 11/129 ONLINE
  • .S95 2011 ONLINE
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
International Monetary Fund
Series statement
IMF Working Paper
Series volume
WP/11/129
http://library.link/vocab/subjectName
  • Dollarization
  • Foreign exchange rates
  • Interest rates
  • Foreign exchange rates
  • Interest rates
  • El Salvador
Label
Official dollarization as a monetary regime : its effects on El Salvador, Andrew Swiston
Instantiates
Publication
Copyright
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Dollarization and Currency Risk; A. Deriving the Currency Risk Premium Under Uncovered Interest Parity; B. Drivers of the Currency Risk Premium Under the Peg; 1. Interest Rates and Spreads Under the Peg; 1. Descriptive Statistics of Interest Rates Under the Peg; 2. Determinants of Colón-Dollar Spreads Under the Peg; C. Effects of Dollarization on Nominal Interest Rates; 2. Colón-Dollar Spreads: History and Counterfactual Predictions; 3. Net Savings from Lower Interest Rates Under Dollarization
  • B. Cross-Country Comparisons8. Interest Rate Pass-Through in Economies Using the U.S. Dollar; 9. Central America: Pass-Through to U.S. Dollar Interest Rates; 10. Central America: Pass-Through to Domestic Currency Interest Rates; C. Factors Explaining Pass-Through; 4. Factors Affecting the El Salvador-U.S. Interest Rate Gap; 11. El Salvador and Panama: Factors Affecting the Interest Rate Gap; V. Conclusions; References; Footnotes
  • D. Magnitude of Foregone Seigniorage4. Costs of Foregone Seigniorage and Benefits of Lower Interest Rates; III. Dollarization and Cyclical Stabilization; A. Costs and Benefits for El Salvador; 5. Monetary Policy Response to Inflation and Output; B. Cross-Country Comparisons; 6. Dollarized Economies: U.S. Monetary Policy Comovement with Inflation and Output; 7. Central America: Monetary Policy Response to Inflation and Output; IV. Dollarization and Monetary Policy Transmission; A. Pass-through in El Salvador; 3. Pass-Through of Monetary Policy Rate to Commercial Bank Rates
Control code
747547709
Extent
1 online resource (26 pages)
Form of item
online
Isbn
9786613874078
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other physical details
illustrations
Specific material designation
remote
System control number
  • imfWPIEA2011129
  • (IMF)WPIEA2011129
  • (OCoLC)747547709
Label
Official dollarization as a monetary regime : its effects on El Salvador, Andrew Swiston
Publication
Copyright
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Dollarization and Currency Risk; A. Deriving the Currency Risk Premium Under Uncovered Interest Parity; B. Drivers of the Currency Risk Premium Under the Peg; 1. Interest Rates and Spreads Under the Peg; 1. Descriptive Statistics of Interest Rates Under the Peg; 2. Determinants of Colón-Dollar Spreads Under the Peg; C. Effects of Dollarization on Nominal Interest Rates; 2. Colón-Dollar Spreads: History and Counterfactual Predictions; 3. Net Savings from Lower Interest Rates Under Dollarization
  • B. Cross-Country Comparisons8. Interest Rate Pass-Through in Economies Using the U.S. Dollar; 9. Central America: Pass-Through to U.S. Dollar Interest Rates; 10. Central America: Pass-Through to Domestic Currency Interest Rates; C. Factors Explaining Pass-Through; 4. Factors Affecting the El Salvador-U.S. Interest Rate Gap; 11. El Salvador and Panama: Factors Affecting the Interest Rate Gap; V. Conclusions; References; Footnotes
  • D. Magnitude of Foregone Seigniorage4. Costs of Foregone Seigniorage and Benefits of Lower Interest Rates; III. Dollarization and Cyclical Stabilization; A. Costs and Benefits for El Salvador; 5. Monetary Policy Response to Inflation and Output; B. Cross-Country Comparisons; 6. Dollarized Economies: U.S. Monetary Policy Comovement with Inflation and Output; 7. Central America: Monetary Policy Response to Inflation and Output; IV. Dollarization and Monetary Policy Transmission; A. Pass-through in El Salvador; 3. Pass-Through of Monetary Policy Rate to Commercial Bank Rates
Control code
747547709
Extent
1 online resource (26 pages)
Form of item
online
Isbn
9786613874078
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other physical details
illustrations
Specific material designation
remote
System control number
  • imfWPIEA2011129
  • (IMF)WPIEA2011129
  • (OCoLC)747547709

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