Hidden Bibliographic Details
| Other authors / contributors: | Cook, David.
International Monetary Fund.
IMF Institute.
|
|---|
| Notes: | Includes bibliographical references (pages 23-26).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
|
|---|
| Summary: | Banks in developing economies often face a mismatch in the currency denomination of their liabilities (foreign currency denominated debt) and assets (domestic currency loans to domestic borrowers). We study the effect of this mismatch on business cycles and monetary policy in a sticky-price, dynamic general equilibrium model of a small open economy. We find from the model analysis that a fixed exchange rate rule that stabilizes the balance sheets of banks offers greater stability than an interest rate rule that targets inflation in the sticky-price sector of the economy.
|
|---|
| Other form: | Print version: Choi, Woon Gyu, 1960- Liability dollarization and the bank balance sheet channel. [Washington, D.C.] : International Monetary Fund, ©2002
|
|---|
