IMF Working Paper Series
Выпуск N02/34 за 2002 год
Опубликовано на портале: 22-10-2007
Fabio Ghironi, Alessandro Rebucci
IMF Working Paper Series.
2002.
No. 02/34.
We compare the performance of a currency board, inflation targeting, and dollarization
in a small, open developing economy with a liberalized capital account. We focus
on the transmission of shocks to currency and country risk premia and on the role
of fluctuations in premia in the propagation of other shocks. We calibrate our model
on Argentina. The framework matches the second moments of key variables well. Welfare
analysis suggests that dollarization is preferable to alternative regimes because
it removes currency premium volatility. However, a currency board can match dollarization
on welfare grounds if the central bank holds a sufficiently large stock of foreign
reserves

