01705cas a2200253 a 4500 AALejournalIMF004740 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865974 1018-5941 BD-DhAAL BD-DhAAL Berkmen, Pelin. Exchange Rate Policy and Liability Dollarization : An Empirical Study / Pelin Berkmen, Eduardo Cavallo. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (47 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 The paper identifies the contemporaneous relationship between exchange rate policy and liability dollarization using three different definitions of dollarization. The presence of endogeneity makes the empirical identification elusive. We use identification through heteroskedasticity to solve the endogeneity problem in the present context (Rigobon, 2003). While we find that countries with high liability dollarization (external, public, or financial) tend to be more actively involved in exchange rate stabilization operations, we do not find evidence that floating, by itself, promotes de-dollarization. Mode of access: Internet Cavallo, Eduardo. IMF Working Papers; Working Paper ; No. 2007/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/033/001.2007.issue-033-en.xml IMF e-Library