Why should emerging economies give up national currencies
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Why should emerging economies give up national currencies a case for "institutions substitution" by Mendoza, Enrique G.

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Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

Subjects:

  • Currency question -- Developing countries.,
  • Capital movements -- Developing countries.,
  • Monetary policy -- Developing countries.,
  • Financial institutions -- Developing countries.

Book details:

Edition Notes

StatementEnrique G. Mendoza.
SeriesNBER working paper series -- no. 8950, Working paper series (National Bureau of Economic Research) -- working paper no. 8950.
ContributionsNational Bureau of Economic Research.
The Physical Object
Pagination31, [6] p. :
Number of Pages31
ID Numbers
Open LibraryOL22435646M

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Financial contagion and Sudden Stops of capital inflows experienced in emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market imperfections that afflict emerging economies with national currencies. Hence, this paper argues that abandoning national currencies to adopt a hard currency can significantly reduce the emerging countries. Their access to international capital markets would improve as the same expertise and information that global investors already gather to evaluate the monetary policy of the hard currency issuer would apply to emerging economies. Yet, adopting a hard currency does not eliminate business cycles, rule out all forms of financial crises, or solve severe fiscal problems that plague emerging economies, and it entails giving up seigniorage and potential benefits of conducting independent monetary Cited by: Get this from a library! Why should emerging economies give up national currencies: a case for 'institutions substitution'. [Enrique G Mendoza; National Bureau of Economic Research.]. emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market imperfections that afflict emerging economies with national currencies. Hence, this paper argues that abandoning national currencies to adopt a .

It has been argued that in order to regain confidence some emerging countries should simply give up their political and monetary economy, abandoning the national currency. Financial contagion and Sudden Stops of capital inflows experienced in emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market imperfections that afflict emerging economies with national currencies. Why should emerging economies give up national currencies: a case for 'institutions substitution'. [Enrique G Mendoza; National Bureau of Economic Research.] -- Abstract: Financial contagion and Sudden Stops of capital inflows experienced in emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market. Why Should Emerging Economies Give up National Currencies: A Case for 'Institutions Substitution' By Enrique G. Mendoza. Get PDF ( KB) Abstract. Financial contagion and Sudden Stops of capital inflows experienced in emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market imperfections Author: Enrique G. Mendoza.

financial contagion and sudden stops of capital inflows experienced in emerging-markets crises may originate in an explosive mix of lack of policy credibility and world capital market. The main point of this paper is to argue that abandoning national currencies in emerging economies to adopt a hard currency can be an effective policy to deal simultaneously with the lack of. Their access to international capital markets would improve as the same expertise and information that global investors already gather to evaluate the monetary policy of the hard currency issuer would apply to emerging economies. Yet, adopting a hard currency does not eliminate business cycles, rule out all forms of financial crises, or solve severe fiscal problems that plague emerging economies, and it entails giving up seigniorage and potential benefits of conducting independent monetary. BibTeX @MISC{Mendoza02whyshould, author = {Enrique G. Mendoza and Enrique G. Mendoza}, title = {Why Should Emerging Economies Give up National Currencies, NBER Working Paper }, year = .