Publication detail

Is Dollarization Right Option? Financial Fragility, Original Sin and Fear of Floating

Author(s): prof. Roman Horváth Ph.D.,
Type: Articles in journals with impact factor
Year: 2004
Number: 0
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Published in: Finance a uver - Czech Journal of Economics and Finance, pp. 252-266
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Abstract: This paper focuses on the option of dollarization/euroization. It attempts to provide some arguments for the view that there are no one-size-fits-all exchange rate policies for the emerging market economies. However, there are some macroeconomic dis-advantages of flexible exchange rates in the emerging market economies stemming from the issues such as ‘original sin’. In a similar sense, timing of euro adoption in accession countries is complex matter as well. The paper compares the costs and benefits of euro adoption, in particular to unilateral euroization.

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