Overshooting and Dollarization in the Democratic Republic of the Congo

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Price:  $15.00

Author/Editor: Philippe Beaugrand
Release Date: © May, 2003
ISBN : 978-1-45185-284-4
Stock #: WPIEA1052003
Stock Status: On back-order

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The paper develops an interpretation of volatile exchange rate movements in a dollarized economy with very high rates of inflation. Differences between the rate of inflation and currency depreciation (over- or undershooting of the exchange rate) are seen as a proxy for changes in the relative demand for domestic and foreign currency. A simple model is calibrated for the Democratic Republic of the Congo in the 1990s and is used to derive estimates of the rate of dollarization.

More publications in this series: Working Papers

More publications by: Philippe Beaugrand