Dollarization and Exchange Rate Fluctuations

Honohan, Patrick

World Bank, Washington, DC

关键词: BANK DEPOSITS;    BANK INTEREST RATES;    BANKING CRISES;    BANKING SYSTEM;    BANKING SYSTEMS;   

DOI  :  10.1596/1813-9450-4172
RP-ID  :  WPS4172

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Although the worldwide growth indollarization of bank deposits has recently slowed, it hasalready reached very high levels in dozens of countries.Building on earlier findings that allowed the maincross-country variations in the share of dollars to beexplained in terms of national policies and institutions,this paper turns to analysis of short-run variations,particularly the response of dollarization to exchange ratechanges, which is shown to be too small to warrant"fear of floating" by dollarized economies. Buthigh dollarization is shown to increase the risk ofdepreciation and even suspension, as indicated by interestrate spreads. While specific policy is needed to deal withthe risks associated with dollarization, the underlyingcauses of unwanted dollarization should also be tackled.