IDEAS home Printed from https://ideas.repec.org/p/col/000566/019460.html
   My bibliography  Save this paper

Financial dollarization and de-dollarization in the new millennium

Author

Listed:
  • Eduardo Levy Yeyati

Abstract

Dollarization, in its many variants, is crucial to understanding Latin American macroeconomics, as well as that of many developing countries. This paper builds a new updated dataset on dollarization, reviews its evolution in Latin America since 2000, and summarizes the lessons learned from several de-dollarizing attempts in the region, based on a three-way taxonomy: 1) attempts that focus on the macroeconomic drivers, 2) microeconomic measures that deter investors from dollarizing their financial assets and liabilities based on market incentives or regulatory limits, and 3) regulations that affect the choice of foreign currency as a means of payment or a unit of account. The study provides examples using seven cases that may be considered paradigmatic of the different dollarization varieties: Bolivia, Peru, Uruguay, Costa Rica, El Salvador, Ecuador and Venezuela.

Suggested Citation

  • Eduardo Levy Yeyati, 2021. "Financial dollarization and de-dollarization in the new millennium," Documentos de trabajo 19460, FLAR.
    • Handle: RePEc:col:000566:019460
    as

    Download full text from publisher

    File URL: https://flar.com/sites/default/files/article/pdf/Financial%20dollarization%20and_0.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madison, Florian, 2024. "A microfounded approach to currency substitution and government policy," Journal of Economic Theory, Elsevier, vol. 219(C).
    2. Eduardo Levy Yeyati & Federico Sturzenegger, 2023. "A balance‐sheet approach to fiscal sustainability," Fiscal Studies, John Wiley & Sons, vol. 44(1), pages 61-84, March.
    3. repec:ocp:ppaper:pb33-22 is not listed on IDEAS
    4. Otaviano Canuto & Sebastian Carranza, 2022. "Dollarization of Argentina: Revival of a Zombie Idea," Policy briefs on Trade Dynamics and Policies 2206, Policy Center for the New South.
    5. Otaviano Canuto & Sebastian Carranza, 2022. "Dollarization of Argentina: Revival of a Zombie Idea," Policy briefs on Economic Trends and Policies 2217, Policy Center for the New South.
    6. Chen, Hongyi & Siklos, Pierre L., 2023. "Currency substitution in a world of looming retail CBDCs: Suggestive currency substitution-based evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    7. Cyril Monnet & Hyun Song Shin & Jon Frost & Leonardo Gambacorta & Raphael Auer & Tara Rice, 2022. "Central Bank Digital Currencies: Motives, Economic Implications, and the Research Frontier," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 697-721, August.
    8. Otaviano Canuto & Sebastian Carranza, 2022. "Dollarization of Argentina: Revival of a Zombie Idea," Research papers & Policy papers on Trade Dynamics and Policies 2206, Policy Center for the New South.
    9. Otaviano Canuto & Sebastian Carranza, 2022. "Dollarization of Argentina: Revival of a Zombie Idea," Research papers & Policy papers on Economic Trends and Policies 2217, Policy Center for the New South.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000566:019460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fondo Latino Americano de Reservas (email available below). General contact details of provider: https://flar.com/publicaciones/#trabajo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.