Title Liability dollarization and the bank balance sheet channel / Woon Gyu Choi and David Cook

Published [Washington, D.C.] : International Monetary Fund, ©2002

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Description 1 online resource (26 pages) : illustrations Series IMF working paper ; WP/02/141 IMF working paper ; WP/02/141 Summary Banks in developing economies often face a mismatch in the currency denomination of their liabilities (foreign currency denominated debt) and assets (domestic currency loans to domestic borrowers). We study the effect of this mismatch on business cycles and monetary policy in a sticky-price, dynamic general equilibrium model of a small open economy. We find from the model analysis that a fixed exchange rate rule that stabilizes the balance sheets of banks offers greater stability than an interest rate rule that targets inflation in the sticky-price sector of the economy Bibliography Includes bibliographical references (pages 23-26) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Banks and banking -- Developing countries -- Econometric models Currency question -- Developing countries -- Econometric models Monetary policy -- Developing countries -- Econometric models Debt -- Developing countries -- Econometric models Foreign exchange -- Developing countries -- Econometric models Banks and banking -- Econometric models. Currency question -- Econometric models. Debt -- Econometric models. Foreign exchange -- Econometric models. Monetary policy -- Econometric models. Developing countries. Form Electronic book Author Cook, David International Monetary Fund IMF Institute

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