01810cas a2200241 a 4500 AALejournalIMF003645 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451862058 1018-5941 BD-DhAAL BD-DhAAL Ize, Alain. Financial Dollarization Equilibria : A Framework for Policy Analysis / Alain Ize. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (30 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 Rapidly rising dollarization and numerous related financial crises in recent years have heightened the need for policy action. This paper contributes to the policy debate by presenting a common analytic framework that examines the roots of de facto financial dollarization under different economic environments and analyzes its interplay with monetary and prudential policies. In addition to providing a systematic analysis of the existence, stability, and multiplicity of dollarization equilibria, the paper makes a few novel contributions. In particular, it stresses the key role played by monetary policy endogeneity and identifies the underlying determinants of the peso premium that are responsible for inducing a preference for the dollar in financial transactions. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/186 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/186/001.2005.issue-186-en.xml IMF e-Library