TY - BOOK ID - 84540831 TI - Currency Substitution : The Recent Experience of Bolivia AU - Clements, Benedict. AU - Schwartz, Gerd. PY - 1992 SN - 1462368166 1455255548 1281601934 1455283681 9786613782625 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Foreign Exchange KW - Inflation KW - Money and Monetary Policy KW - Demand for Money KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Price Level KW - Deflation KW - Monetary economics KW - Banking KW - Macroeconomics KW - Currency KW - Foreign exchange KW - Dollarization KW - Bank deposits KW - Currencies KW - Exchange rates KW - Monetary policy KW - Financial services KW - Money KW - Prices KW - Banks and banking KW - Bolivia UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540831 AB - This paper analyzes the determinants of currency substitution in Bolivia in the period following the 1984/85 hyperinflation. We find that expected exchange rate depreciation and actual interest rate differentials between boliviano and dollar deposits in the Bolivian banking system are statistically significant determinants of the degree of currency substitution. However, the explanatory power of these variables is low compared to variables that measure the degree of inertia in the currency substitution process. Thus, further reductions in inflation or higher interest rates for boliviano bank deposits are likely to have but a small effect on dollarization. ER -