01818cas a2200253 a 4500 AALejournalIMF002235 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842807 1018-5941 BD-DhAAL BD-DhAAL Barajas, Adolfo. Dollarization of Liabilities : Beyond the Usual Suspects / Adolfo Barajas, Armando Mendez Morales. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (41 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 Dollarization of liabilities (DL) has emerged as a key factor in explaining the vulnerability of emerging markets to financial and currency crises. "Usual suspects" of causing DL comprise "fatalistic" determinants such as a long history of unsound macroeconomic policies and development and institutional factors, aided by moral hazard opportunities related to government guarantees. This paper assesses empirically the relevance of these factors relative to alternative explanations. Based on a sample of Latin American countries, we find that ongoing central bank intervention in the foreign exchange market, relative market power of borrowers, and financial penetration are at least as important in explaining DL. Mode of access: Internet Mendez Morales, Armando. IMF Working Papers; Working Paper ; No. 2003/011 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/011/001.2003.issue-011-en.xml IMF e-Library