TY - BOOK ID - 84540561 TI - Exchange Rate Policy and Liability Dollarization : An Empirical Study AU - Berkmen, Pelin. AU - Cavallo, Eduardo. PY - 2007 SN - 1462375014 1452788472 1283516152 1451910509 9786613828606 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Money and Monetary Policy KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Development Planning and Policy: Trade Policy KW - Factor Movement KW - Foreign Exchange Policy KW - Currency KW - Foreign exchange KW - Monetary economics KW - Exchange rates KW - Exchange rate policy KW - Currencies KW - Dollarization KW - Exchange rate arrangements KW - Money KW - Monetary policy KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540561 AB - The paper identifies the contemporaneous relationship between exchange rate policy and liability dollarization using three different definitions of dollarization. The presence of endogeneity makes the empirical identification elusive. We use identification through heteroskedasticity to solve the endogeneity problem in the present context (Rigobon, 2003). While we find that countries with high liability dollarization (external, public, or financial) tend to be more actively involved in exchange rate stabilization operations, we do not find evidence that floating, by itself, promotes de-dollarization. ER -