This paper investigates the impact of dollarization policy on Zimbabwe exports over a period 20 years. The study used panel data for 50 potential historical trading partners. Random Effects Model (REM) was applied to estimate gravity model equation. Panel Feasible Generalized Least Squares (FGLS) regression technique corrected heteroskedasticity and contemporaneous correlation across panels pro...

2008 financial crisis has led to a differentiation in the traditional monetary and fiscal policies implemented by economies. With 2013 global recession, 2018 squeezing pandemic process, economic stability tried ensured structural besides policies. Especially deepening exchange rate volatility brought concept of stabilization dollarization back agenda. In this research, it is aimed examine chang...

This paper analyzes the relationship between money and inflation in a small open economy, where domestic and foreign currencies are perfect substitutes as means of payment. It is shown that, if the path of domestic money supply is such that individuals find it optimal to change the currency in which transactions are settled, there will be an adjustment period during which domestic inflation adj...

What determines which assets are used in transactions? We develop a framework where the extent to which assets are recognizable determines the extent to which they are acceptable in exchange—i.e. it determines their liquidity. Recognizability and liquidity are endogenized by allowing agents to invest in information. We analyse the effects of monetary policy. There can be multiple equilibria, wi...