Essays on the optimal choice of exchange rate regime in emerging countries

Author: María Lorena Marí del Cristo

Defense date: April 25, 2014

Advisor/s: Marta Gómez-Puig

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Research fields: Development Economics | International Finance |

This thesis comprises three empirical studies about the consequences of full dollarization for three major economic factors: (1) the exchange rate pass-through, (2) fiscal sustainability, and (3) bond market behavior. The main contributions of this thesis are first, to show that two of the most cited benefits of full dollarization can be called into question in the Ecuadorian economy; and second, making a comparative analysis between dollarized and non dollarized countries, to highlight an advantage of full dollarization: it may to some extent isolate the real economy from financial shocks.