01880cas a2200265 a 4500 AALejournalIMF018310 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484345269 1018-5941 BD-DhAAL BD-DhAAL Geng, Nan. Carry Trade vs. Deposit-Driven Euroization / Nan Geng, Tiberiu Scutaru, Johannes Wiegand. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (29 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 Financial 'euroization'-or 'dollarization' outside of Central and Eastern Europe-is typically analyzed as a singular phenomenon that can be traced to a common set of factors. This paper argues that two types of euroization need to be distinguished, which have different causes, economic consequences, and policy implications: carry trade euroization that emerges when households and corporations seek to exploit interest rate differentials between foreign currency loans and local currency deposits, and deposit-driven euroization that is rooted in distrust in the local currency as a savings vehicle. We present a theoretical framework that sketches key features of both euroization types, and test it with data from 28 Emerging European and Central Asian economies. Mode of access: Internet Scutaru, Tiberiu. Wiegand, Johannes. IMF Working Papers; Working Paper ; No. 2018/058 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/058/001.2018.issue-058-en.xml IMF e-Library