Currency substitution in Turkey
نویسندگان
چکیده
منابع مشابه
Evolutionary Dynamics of Currency Substitution
This paper examines the issues related to the competition between two currencies in an agent-based computational economic model. The economic environment is a two-country overlapping generations economy with no restrictions on foreign currency holdings. Governments of both countries nance their de cits via seignorage. Agents make decisions about their savings and portfolio decisions. They use t...
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We study endogenous currency substitution in a decentralized trade environment. Sellers maximize profits from sales of imperfectly substitutable goods by posting prices in either one of two currencies. A unique symmetric equilibrium exists where goods are priced only in the local currency. This occurs if foreign trade is sporadic, there is sufficient but not excessive liquidity, and discounting...
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Liberalization of foreign exchange regime and instability of national currency are among the major factors that shaped the level and strength of currency substitution in Ukraine. In this paper, a problem of currency substitution is addressed from the point of view of households. It is argued that the most conventional measure of currency substitution, namely the ratio of foreigncurrency denomin...
متن کاملWelfare Gains from Disination in an Economy with Currency Substitution
This paper builds a general equilibrium model with working capital and currency substitution and uses this model to assess welfare gains from disination. It is found that welfare gains from disination are higher when the baseline ination rate and the elasticity of substitution between foreign currency and domestic deposits are higher. Indeed the gains from disination can be quite large comp...
متن کاملHysteresis in a simple model of currency substitution
A cash-in-advance model in which the cost of buying goods with a foreign currency is decreasing in the economy’s accumulated experience in transacting in the foreign currency is shown to display hysteresis in money velocity; that is, a temporary increase in expected in ation can cause a permanent increase in velocity. In addition, the model implies that the domestic currency does not have to do...
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ژورنال
عنوان ژورنال: Applied Economics
سال: 1994
ISSN: 0003-6846,1466-4283
DOI: 10.1080/00036849400000019