Gomis-Porqueras, Pedro and Serrano, Carlos and Somuano, Alejandro (2005): Dollar denominated accounts in Latin America during the 1990s. Published in: Journal of Economics and Finance; , Vol. 2, No. 29 (2005): pp. 259-270.
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In this paper we analyze the evolution of dollar-denominated accounts in Latin America and how they impact the stability of the banking system and the volatility of macroeconomic aggregates. Our findings reveal that dollar deposits are strongly influenced by depreciation expectations of the local currency even in an environment of fairly low inflation. We also find that having more dollar accounts increases the probability of future crises if the economy is already in a crisis. Finally, our findings suggest that for some macroeconomic aggregates there exists a positive correlation, in the long and short run, between their volatility and the volume of dollardenominated accounts in the banking system.
|Item Type:||MPRA Paper|
|Original Title:||Dollar denominated accounts in Latin America during the 1990s|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
|Depositing User:||Pedro Gomis Porqueras|
|Date Deposited:||26. Apr 2012 03:04|
|Last Modified:||14. Feb 2013 13:08|
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