Uruguay : Selected Issues

1URYEA2008002 Image
Price:  $18.00

Release Date: © February, 2008
ISBN : 978-1-45183-941-8
Stock #: 1URYEA2008002
English
Stock Status: On back-order

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Description

This paper examines the inflation expectations, monetary policy credibility, and dollarization. Country fundamentals have explained variation in sovereign spreads, but external factors play an important role. This paper assesses the role of and prospects for bank-lending from a cyclical and structural perspectives. A model calibrated for Uruguay, a financially dollarized economy, suggests that reserves are nearing optimal prudential levels. The results of a modified Merton framework, applied to the case of the Uruguayan banking system, appear to be promising for countries without equity markets.

Taxonomy

Economic policy , Inflation , Monetary policy , Reserves




More publications in this series: IMF Staff Country Reports