Jump to ContentJump to Main Navigation
Latin American Macroeconomic ReformsThe Second Stage$
Users without a subscription are not able to see the full content.

Jose Gonzalez, Vittorio Corbo, Anne O. Krueger, and Aaron Tornell

Print publication date: 2003

Print ISBN-13: 9780226302676

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226302683.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 26 September 2021

Exchange Rate Pass-through and Partial Dollarization: Is There a Link?

Exchange Rate Pass-through and Partial Dollarization: Is There a Link?

(p.79) 2 Exchange Rate Pass-through and Partial Dollarization: Is There a Link?
Latin American Macroeconomic Reforms

José Antonio González

University of Chicago Press

This chapter examines how dollarization affects the transmission channel of nominal exchange rate fluctuations into domestic inflation for thirteen countries in Latin America between 1980 and 2000. It finds no relationship between the level of dollarization and the degree of pass-through of the nominal exchange rate into domestic inflation. A higher degree of dollarization between countries does not lead to higher pass-through. Therefore, more dollarized economies do not necessarily have less ability to influence their real exchange rates through nominal exchange rate movements. Within the same country, an increase in dollarization does not hinder a country's ability to adjust its exchange rate through nominal fluctuations. Higher dollarization does not necessarily mean higher dollar-indexation, as is commonly believed. The price index is not determined by the unit of accounting but by internal market conditions.

Keywords:   dollarization, nominal exchange rates, domestic inflation, Latin America

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.