Publication:
Dollars, Debt, and International Financial Institutions

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creativeworkseries.issn1564-698X
dc.contributor.authorYeyati, Eduardo Levy
dc.date.accessioned2012-03-30T07:12:35Z
dc.date.available2012-03-30T07:12:35Z
dc.date.issued2007-01-30
dc.description.abstractFinancial dollarization is increasingly seen as a concern because of its tendency to contribute to financial crises and output volatility. As a result the debate on financial dollarization has shifted in favor of a more proactive stance on dedollarization. While often neglected, lending from international financial institutions is an important source of financial dollarization in emerging economies and must be considered in any dedollarization strategy. This article revisits old and new arguments in favor of international financial institution lending in the local currency and argues that any such initiative should rely, at least initially, on demand from residents seeking stable returns in units of the local consumption basket but who are reluctant to take on sovereign risk. Superior enforcement capacity enables international financial institutions to intermediate these savings, currently invested in dollarized foreign assets, back into the local economy. The international financial institutions can offer investment-grade local currency bonds and use the proceeds to dedollarize their own lending to noninvestment-grade countries, thereby reducing financial dollarization and fostering the development of local currency markets.en
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/4445
dc.identifier.issn1564-698X
dc.identifier.urihttps://hdl.handle.net/10986/4445
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectDebt
dc.subjectemerging economies
dc.subjectfinancial crises
dc.subjectinternational financial institution
dc.subjectInternational Financial Institutions
dc.subjectLevy
dc.subjectlocal currency
dc.subjectlocal economy
dc.subjectreturns
dc.subjectsovereign risk
dc.titleDollars, Debt, and International Financial Institutionsen
dc.title.alternativeDedollarizing Multilateral Lendingen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.date.doiregistration2025-05-06T11:39:00.002882Z
okr.doctypeJournal Article
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.identifier.report1
okr.language.supporteden
okr.pagenumber21
okr.pagenumber47
okr.pdfurlwber_21_1_21.pdfen
okr.peerreviewAcademic Peer Review
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.region.countryChile
okr.region.countryIndonesia
okr.region.countryPhilippines
okr.region.countryIndia
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.volume21
relation.isJournalIssueOfPublicationda0238fe-5dc3-4ee1-b6f7-92fe9aeeab43
relation.isJournalIssueOfPublication.latestForDiscoveryda0238fe-5dc3-4ee1-b6f7-92fe9aeeab43
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication5586d687-0acc-4416-ace0-8fcc3b13a63e
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