Publication in refereed journal
香港中文大学研究人员 ( 现职)
| 施康教授 (经济学系) |
全文
| 数位物件识别号 (DOI) http://dx.doi.org/10.1016/j.jinteco.2010.01.005 |
引用次数
Web of Sciencehttp://aims.cuhk.edu.hk/converis/portal/Publication/4WOS source URL
Scopushttp://aims.cuhk.edu.hk/converis/portal/Publication/4Scopus source URL
其它资讯
摘要This paper develops a small open economy general equilibrium model with nominal rigidities to study twin dollarization in East Asian economies, a phenomenon where firms borrow in US dollars and also set export prices in US dollars. In this model, we endogenize both the currency of liability denomination and the currency of export pricing. We show that a key factor that affects firms' dollarization decisions is exchange rate policy. Twin dollarization is an optimal strategy for all firms when exchange rate flexibility is limited, which implies that a fixed exchange rate regime may lead to an equilibrium with twin dollarization. Furthermore, we find that twin dollarization can reduce the welfare loss caused by the fixed exchange rate regime, as it helps to cushion the economy against domestic nominal risk. ? 2010 Elsevier B.V.
着者Shi K., Xu J.
期刊名称Journal of International Economics
出版年份2010
月份5
日期1
卷号81
期次1
出版社Elsevier BV
出版地Netherlands
页次109 - 121
国际标準期刊号0022-1996
电子国际标準期刊号1873-0353
语言英式英语
关键词Exchange rate flexibility, Optimal strategy, Twin dollarization, Welfare
