Positive and Normative Implications of Liability Dollarization for Sudden Stops Models of Macroprudential Policy
“Liability dollarization,” namely intermediation of capital inflows in units of tradables into domestic loans in units of aggregate consumption, adds three important effects driven by real exchange rate fluctuations that alter standard models of Sudden Stops significantly: changes on the debt repaym...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Palgrave Macmillan Ltd.
2019
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| Online Access: | View Fulltext in Publisher |