01832cas a2200253 a 4500 AALejournalIMF007820 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858808 1018-5941 BD-DhAAL BD-DhAAL Mourmouras, Alex. Smuggling, Currency Substitution and Unofficial Dollarization : A Crime-Theoretic Approach / Alex Mourmouras, Steven Russell. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (44 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 Large stocks of U.S. dollars and other hard currencies circulate in the transition economies, in Latin America, and in other countries that have experienced macroeconomic mismanagement. Using a monetary model that combines the legal restrictions and crime-theoretic traditions, this paper demonstrates how leaky exchange controls lead to currency substitution and progressive dollarization. The paper also analyzes the impact of dollarization on the ability of governments to earn seigniorage, the dynamics of dollarization in a growing economy, and the central role of expectations-specifically, confidence in the domestic currency-in determining the extent of dollarization and, potentially, in reversing it. Mode of access: Internet Russell, Steven. IMF Working Papers; Working Paper ; No. 2000/176 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/176/001.2000.issue-176-en.xml IMF e-Library