01753cas a2200253 a 4500 AALejournalIMF001876 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848618 1018-5941 BD-DhAAL BD-DhAAL Clements, Benedict. Currency Substitution : The Recent Experience of Bolivia / Benedict Clements, Gerd Schwartz. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the determinants of currency substitution in Bolivia in the period following the 1984/85 hyperinflation. We find that expected exchange rate depreciation and actual interest rate differentials between boliviano and dollar deposits in the Bolivian banking system are statistically significant determinants of the degree of currency substitution. However, the explanatory power of these variables is low compared to variables that measure the degree of inertia in the currency substitution process. Thus, further reductions in inflation or higher interest rates for boliviano bank deposits are likely to have but a small effect on dollarization. Mode of access: Internet Schwartz, Gerd. IMF Working Papers; Working Paper ; No. 1992/065 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/065/001.1992.issue-065-en.xml IMF e-Library