Show/Hide Menu
Hide/Show Apps
Logout
Türkçe
Türkçe
Search
Search
Login
Login
OpenMETU
OpenMETU
About
About
Open Science Policy
Open Science Policy
Open Access Guideline
Open Access Guideline
Postgraduate Thesis Guideline
Postgraduate Thesis Guideline
Communities & Collections
Communities & Collections
Help
Help
Frequently Asked Questions
Frequently Asked Questions
Guides
Guides
Thesis submission
Thesis submission
MS without thesis term project submission
MS without thesis term project submission
Publication submission with DOI
Publication submission with DOI
Publication submission
Publication submission
Supporting Information
Supporting Information
General Information
General Information
Copyright, Embargo and License
Copyright, Embargo and License
Contact us
Contact us
Financial dollarization, monetary policy stance and institutional structure : the experience of Latin America and Turkey
Download
index.pdf
Date
2005
Author
Uzun, Arzu
Metadata
Show full item record
Item Usage Stats
325
views
155
downloads
Cite This
Financial dollarization, defined as the substantial presence of foreign currency denominated assets and liabilities in the balance sheets of the main sectors of an economy, is a widespread phenomenon among developing economies, especially in Latin America and Turkey. Since financial dollarization often causes financial fragility and limits the effectiveness of monetary policy, the causes and consequences of it and dedollarization strategies have been placed at the forefront of policy debates especially in developing countries. The purpose of this study is to analyse the determinants of corporate sector asset and liability dollarization in ten Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Mexico, Peru, Uruguay and Venezuela) and Turkey for the period 1990-2001. To this end, this study considers the effects of monetary policy stance (exchange rate flexibility and adoption of a de facto inflation targeting regime), institutional structure (governance) and macroeconomic stance variables (volatilities of inflation and real effective exchange rates) on financial dollarization. The results based on panel data estimations suggest that high and volatile inflation and depreciation of domestic currency induce a switch to dollar denominated assets and liabilities. Furthermore, exchange rate regime flexibility appears to reduce liability dollarization and encourage asset dollarization. Finally, the empirical analysis supports the hypothesis that adoption of inflation targeting regime and strengthening the institutional structure are significant in decreasing the level of financial dollarization.
Subject Keywords
Economics.
URI
http://etd.lib.metu.edu.tr/upload/12606739/index.pdf
https://hdl.handle.net/11511/15758
Collections
Graduate School of Social Sciences, Thesis
Suggestions
OpenMETU
Core
An empirical analysis of the relationship between financial deepening and economic growth: the case of Turkey
Esen, Kılıç; Voyvoda, Ebru; Department of Economics (2008)
This study aims to investigate the direction of the relationship between financial deepening and economic growth after the completion of financial liberalization in Turkey. In order to do this, an unbalanced panel data set of 49 OECD and emerging countries for 1953-2005 period is examined with Granger causality and panel data estimation techniques. In the light of panel data analysis results, quarterly Turkish time series data for 1987-2006 period is examined by using Granger causality, cointegration and Ve...
Stock market returns in an emerging financial market: Turkish case study
Gazioglu, Saziye (Informa UK Limited, 2008-01-01)
Increased globalization in financial markets implies that the percentage of all shares under foreign ownership in domestic stock markets has been rising. The recent speculative attacks on the foreign exchange market in November 2000, followed by February 2001, led Turkey into a deep economic crisis. Real stock returns as an important indicator for a forthcoming or pending financial crisis, using net capital flows have already been established in Gazioglu (2003). In this article we explore the effects of cap...
Foreign money shocks and the welfare performance of alternative monetary policy regimes
Senay, Ozge; Sutherland, Alan (Wiley, 2007-01-01)
The welfare properties of monetary policy regimes for a country subject to foreign money shocks are examined in a two-country sticky-price model. Money targeting is found to be welfare superior to a fixed exchange rate when the expenditure switching effect of exchange rate changes is relatively weak, but a fixed rate is superior when the expenditure switching effect is strong. However, price targeting is superior to both these regimes for all values of the expenditure switching effect. A welfare-maximising ...
Fiscal sustainability, banking fragility and balance sheets : 2000-2001 financial crises in Turkey
Koğar, Çiğdem İzgi; Özmen, Erdal; Department of Economics (2004)
The aim of this thesis is to identify and assess the reasons of the Turkish financial crises based on various crises model explanations including the first, the second and the third generation models. It is argued that following factors played a crucial role in triggering crises in Turkey. Firstly, under the weak sustainable fiscal policies, implementation of the exchange rate based stabilization program caused the increase in vulnerabilities in the sectoral balance sheets and thus increased the prospective...
Macroeconomic impact of workers' remittances on output growth: evidence from Turkey
Yaşar, Pınar; Tansel, Aysıt; Department of Economics (2005)
In this study, a demand oriented simultaneous equation macroeconometric model with a dynamic perspective is constructed in order to investigate the impact of workers̕ remittances on output growth via their effects on key macro variables such as private consumption, investment and imports for Turkey. The study covers the period of 1964-2003 on an annual basis. Results of the analysis suggest that workers̕ remittances affect output growth in a positive manner through the multiplier process. It is found that t...
Citation Formats
IEEE
ACM
APA
CHICAGO
MLA
BibTeX
A. Uzun, “ Financial dollarization, monetary policy stance and institutional structure : the experience of Latin America and Turkey,” M.S. - Master of Science, Middle East Technical University, 2005.