Foreign Currency Deposits and the Demand for Money in Developing Countries PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Foreign Currency Deposits and the Demand for Money in Developing Countries PDF full book. Access full book title Foreign Currency Deposits and the Demand for Money in Developing Countries by Mr.Mohsin S. Khan. Download full books in PDF and EPUB format.
Author: Mr.Mohsin S. Khan
Publisher: International Monetary Fund
ISBN: 1451931301
Category : Business & Economics
Languages : en
Pages : 40
Get Book Here
Book Description
This paper examines the relative demands for domestic and foreign currency deposits by residents of developing countries. A dynamic currency substitution model that incorporates forward-looking rational expectations is formulated and then estimated for a group of ten developing countries. The results indicate that the foreign rate of interest and the expected rate of depreciation of the parallel market exchange rate are important factors in the choice between holding domestic money or switching to foreign currency deposits held abroad. From an empirical standpoint, the forward-looking framework adopted here also turns out to be superior to the conventional currency-substitution model.
Author: Mr.Mohsin S. Khan
Publisher: International Monetary Fund
ISBN: 1451931301
Category : Business & Economics
Languages : en
Pages : 40
Get Book Here
Book Description
This paper examines the relative demands for domestic and foreign currency deposits by residents of developing countries. A dynamic currency substitution model that incorporates forward-looking rational expectations is formulated and then estimated for a group of ten developing countries. The results indicate that the foreign rate of interest and the expected rate of depreciation of the parallel market exchange rate are important factors in the choice between holding domestic money or switching to foreign currency deposits held abroad. From an empirical standpoint, the forward-looking framework adopted here also turns out to be superior to the conventional currency-substitution model.
Author: Pierre-Richard Agénor
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
Get Book Here
Book Description
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451925190
Category : Business & Economics
Languages : en
Pages : 22
Get Book Here
Book Description
The growing importance of foreign currency deposits (FCDs) in some developing countries has raised numerous issues, particularly regarding the effectiveness of economic policies. This paper discusses factors that influence the emergence of FCDs and their impact on key macroeconomic relations. It is shown that while FCDs render more visible the changes in the economic structure occasioned by the shift in residents’ portfolio asset preferences, these changes essentially reflect currency substitution that often prevails prior to the introduction of FCDs. Moreover, FCDs provide only limited scope for effectively addressing the external and domestic imbalances that contribute to the growth in currency substitution.
Author: Mr.Guillermo Calvo
Publisher: International Monetary Fund
ISBN: 145184588X
Category : Business & Economics
Languages : en
Pages : 32
Get Book Here
Book Description
This paper reviews the main policy and analytical issues related to currency substitution in developing countries. The paper discusses, first, whether currency substitution should be encouraged or not; second, how the presence of currency substitution affects the choice of nominal anchors in inflation stabilization programs; third, the effects of changes in the rate of growth of the money supply on the real exchange rate; fourth, the interaction between inflationary finance and currency substitution; and, finally, issues related to the empirical verification of the currency substitution hypothesis.
Author: Subrata Ghatak
Publisher: Red Globe Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 324
Get Book Here
Book Description
This book is an introduction to monetary economics with a particular reference to issues relevant for developing economies.
Author: Mr.Adam Bennett
Publisher: International Monetary Fund
ISBN: 9781557757579
Category : Business & Economics
Languages : en
Pages : 62
Get Book Here
Book Description
Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.
Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
ISBN: 1451923236
Category : Business & Economics
Languages : en
Pages : 44
Get Book Here
Book Description
The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange market, currency substitution features, and forward-looking rational expectations. Temporary expansionary demand policies are associated with an increase in output and prices, a fall in the stock of net foreign assets, and a depreciation of the parallel exchange rate. The speed of adjustment is inversely related to the degree of rationing in the official foreign currency market. A once-for–all devaluation of the official exchange rate has no long-term effect on the premium.
Author: Richard N. Cooper
Publisher: Princeton, N.J. : International Finance Section, Princeton University
ISBN:
Category : Business & Economics
Languages : en
Pages : 48
Get Book Here
Book Description
Author: Juan-Antonio Morales
Publisher: Oxford University Press
ISBN: 0198854714
Category : Business & Economics
Languages : en
Pages : 384
Get Book Here
Book Description
The book gives a broad coverage of the monetary policy issues in Low Financial Development Countries (LFDCs). These low and lower middle income countries are characterized by a predominance of bank finance, shallow financial markets, low financial inclusion, weak integration with world capital markets and a high degree of informality in economic activity. Monetary policy acquires special twists, making it different in many aspects from the policies followed in advanced and emerging market economies. The book covers the main facets of monetary policy making, using an approach that combines the discussion of theoretical arguments, of results from empirical studies and of policy experiences relevant for LFDCs. The book presents the monetary policy instruments they use and assesses the specificities of their monetary transmission mechanism. It evaluates the advantages, drawbacks and challenges of the different nominal anchors they may choose from: exchange rate targeting, monetary targeting and inflation targeting. This discussion is set against the background of the three main goals pursued by central banks: price, output and financial stability. Particular attention is devoted to the issue of the credibility of central banks and to the trade-offs they face when external shocks, to which these countries are very vulnerable, lead to conflicts among the three goals they pursue. The book also covers more specific topics, such as the challenges raised by fiscal dominance and by dollarization, the implications of informal labor markets and of microfinance institutions for monetary policy-making and the role of models for forecasting and policy evaluation.
Author: Sheila Page
Publisher: Routledge
ISBN: 1136139249
Category : Business & Economics
Languages : en
Pages : 388
Get Book Here
Book Description
Developing countries now use monetary policy as part of their adjustment programmes but its targets, the tools, and the theory were developed for advanced countries. Low income countries do not have the sophisticated financial sectors that rich ones can assume, and the shocks and size of adjustment which they face may be much greater. Using six country studies, with special analysis of the roles of the external sector and the informal financial sector, this book analyses the interaction among monetary policy, the financial sector, and development.
