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Economic Policy in a Highly Dollarized Economy: The Case of Cambodia

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  • International Monetary Fund

Abstract

This study examines the challenges and issues facing policymakers in highly dollarized economies. Focusing on Cambodia, which achieved almost complete dollarization during 1991-95, the authors review recent developments in the literature on dollarization and examine the costs and benefits of dollarization in Cambodia, including the ensuing macroeconomic policy implications. They carry out an econometric estimation of cash foreign currency circulation in Cambodia in order to gauge the degree of dollarization. In addition to this analysis, the authors present a short description of Cambodia’s economic, financial, and structural background.

Suggested Citation

  • International Monetary Fund, 2003. "Economic Policy in a Highly Dollarized Economy: The Case of Cambodia," IMF Occasional Papers 2003/008, International Monetary Fund.
  • Handle: RePEc:imf:imfops:2003/008
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    Citations

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    Cited by:

    1. Ms. Nombulelo Braiton, 2011. "Dollarization in Cambodia: Causes and Policy Implications," IMF Working Papers 2011/049, International Monetary Fund.
    2. Jeta Menkulasi & Lodewyk Erasmus & Jules Leichter, 2009. "Dedollarization in Liberia-Lessons From Cross-Country Experience," IMF Working Papers 2009/037, International Monetary Fund.
    3. Mr. Felix Fischer & Charlotte J. Lundgren & Mr. Samir Jahjah, 2013. "Making Monetary Policy More Effective: The Case of the Democratic Republic of the Congo," IMF Working Papers 2013/226, International Monetary Fund.

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