An Analysis of the Official Dollarization Regime in Montenegro : Theoretical Approaches and Empirical Evidence

• Autorzy: Slobodan Lakić , Damir Sehović , Jasmina Cetković
• Języki publikacji: EN

Abstrakty

EN

Through official unilateral dollarization, the economic system of Montenegro faced the records of real costs and benefits, which finally resulted in economic indicators. The absence of sovereignty, i.e. independence of monetary policy and exchange rate policy, decreases monetary factors' effects which are measured by realized mac- roeconomic performances. Because official dollarization should promote credibility, macroeconomic stability and sustainable growth, it is necessary to make a distinction between monetary regime calculus in Montenegro before initiating crisis structural disorder from the period of the effectuation of adverse trends, for the purpose of providing final evaluation of the functioning of dollarized economy. Empirical research conducted to show the effects of the official dollarization in Montenegro explicitly emphasized the specific weight of costs and benefits, suggesting that achieved macro- economic performances are not exclusively the result of monetary regime functioning. (original abstract)

Słowa kluczowe

EN

Monetary system; Interest rate; Sovereignty; Balance of payments; Effectuation

PL

System monetarny; Stopa procentowa; Suwerenność; Bilans płatniczy; Efektuacja

• Czasopismo: Journal of International Studies
• Rocznik: 2016
• Tom: 9
• Numer: nr 2
• Strony: 48--64

Twórcy

autor

Slobodan Lakić

• University of Montenegro, Montenegro

autor

Damir Sehović

• University of Montenegro, Montenegro

autor

Jasmina Cetković

• University of Montenegro, Montenegro

Bibliografia

• Arellano C. & Heathcote J. (2007). Dollarization and Financial Integration. Board of Governors of the Federal Reserve System. International Finance Discussion Papers no 890.
• Barro, R.J. & Grilli V (1994). European Macroeconomics. MacMillan, 483.
• Berg, Andrew, & Eduardo Borensztein. (2000). The Dollarization Debate. Finance and Development No. 1 (March). Washington, D.C: International Monetary Fund.
• Bogetic, Z. (2000). Official Dollarization: Current Experiences and Issues. Cato Journal No 2. Washington, D.C: Cato Institute.
• Burda, M. & Wyplosz, C. (2001). Macroeconomics. A European Text. Oxford. University Press.
• Calvo G. & A. V Carlos. (1992). Currency Substitution in Developing Countries. IMF Working Paper92/40. Washington, D.C: International Monetary Fund.
• Central Bank of Montenegro. (2010). Analysis impact of measures Central Bank of Montenegro on banking system of Montenegro. Working studies No 19. Podgorica.
• Cespedes, Luis Felipe, & Roberto Chang. (2001). Dollarization of Liabilities, Net Worth Effects, and Optimal Monetary Policy. NBER Conference on Crisis Prevention, Islamorada, Florida (January).
• Chang, Roberto, & Andres Velasco. (2002). Dollarization: Analytical Issues. Working Paper (March). Cambridge, MA: National Bureau of Economic Research.
• Dornbush, Rudiger. (2001). A Primer on Emerging Market Crisis. Working Paper (January). Cambridge, MA: Massacushetts Institute of Technology.
• Duncan, Roberto. (2003). Floating, Official Dollarization, and Macroeconomic Volatility; An Analysis for the Chilean Economy. Working Paper (December). Santiago de Chile: Central Bank of Chile.
• Edwards S., and I. Magendzo. (2006). Strict dollarization and economic performance: an empirical investigation. Journal of Money, Credit and Banking, 38 (1), pp.269-282.
• Edwards, Sebastian, & I. Igal Magendzo (2003). Strict Dollarization and Economic Performance: An Empirical Investigation. Working Paper (July). Cambridge, MA: National Bureau of Economic Research.
• Edwards, Sebastian. (2001). Exchange Rate Regimes, Capital Flows and Crisis Prevention. Working Paper (December). Cambridge, MA: National Bureau of Economic Research.
• Eichengreen, Barry, & Andrew K. Rose. (2001). Does It Pay to Defend Against a Speculative Attack". Working Paper (July). Cambridge, MA: National Bureau of Economic Research.
• Enrique G. Mendoza. (2002). Why Should Emerging Economies Give up National Currencies: A Case for 'Institutions Substitution'. NBER Working Papers 8950. National Bureau of Economic Research, Inc.
• Fischer, S. (1996). Stability and the Exchange Rate System in a Monetarist Model of the Balance of Payments. in R. Aliber (Ed) The Political Economy of Monetary Reform, Allahand.
• Fischer, S. (2001). Exchange Rate Regimes: Is the Bipolar View Correct? Journal of Economic Perspectives; 15(2), 3-24.
• Frankel, Jeffrey A., & Andrew K. Rose. (1998). The Endogeneity of the Optimum Area Criteria. Economic Journal, July, pp. 1009-1025.
• Goldfajn I., & Olivares G. (2000). Is Adopting Full Dollarization the Solution? Looking at the evidence. Departmento de Economia Puc - Rio. Texto para Discussao, br. 146.
• Gwartney, J., K. Schuler, and R. Stein. (2001). Achieving Monetary Stability at Home and Abroad. Cato Journal 21, 183-203.
• Hanke, Steve H., & Kurt Schuler. (1999). A Monetary Constituion for Argentina: Rules for Dollarization. Cato Journal No 3 (Winter). Washington, D.C: Cato Institute.
• Jacome, Luis I., & Ake Lonnberg. (2010). Implementing Official Dollarization. Working Paper (April). Washington, D.C: International Monetary Fund.
• Johnson, Harry G. (1972). The Monetary Approach to Balance-of-Payments Theory. The Journal of Financial and Quantitative Analysis No. 2 (1555-1572). New York: Cambridge University Press.
• Kharlamova, G., Vertelieva, (2013). O. The international competitiveness of countries: Economic-mathematical approach, Economics and Sociology, 6 (2), pp. 39-52.
• Klein, Michael W. (2002). "Dollarization and Trade". Working Paper (April). Cambridge, MA: National Bureau of Economic Research.
• Lakic, S.,Draskovic, M. (2015). Montenegrin Journal of Economics,11(2), pp. 113-124
• Lakic, Slobodan. (2004). Kontroverza: Dolarizacija - valutni odbor. Naucni skup, Knjiga 67. Podgorica: Crnogorska akademija nauka i umjetnosti.
• Lakic, Slobodan. (2006). Adekvatnost rezima monetarne politike i deviznog kursa u susret evropskim integracijama. Naucni skup, Knjiga 31. Podgorica: Crnogorska akademija nauka i umjetnosti.
• Lakić, Slobodan & Jaćimović, Danijela. (2014). Foreign direct investments at the Western Balkans in the crisis context. Belgrade: Institute of International Politics and Economics.
• Lojschova D. H, Rodrfguez-Vives M and Slavfk M. (2011). The size and composition of Government debt in the Euro Area, ECB Occasional Paper No 132.
• Mack, Connie. (2000). Dollarization and Cooperation to Achieve Sound Money. Speech given at the Federal Reserve Bank of Dallas, 6 March 2000.
• Mann C. (1999). Dollarization as Diet. www.iie.com/publications/papers/mann0499.htm.
• Moreno-Villalaz, J.L. (1999) Lessons from the Monetary Experience of Panama: A Dollar Economy with Financial Integration. Cato Journal 18(3), 421-39.
• Polak, Jacques. (2001). The Two Monetary Approaches to the Balance of Payments: Keynesian and Johnsonian. Working Paper (August). Washington, DC: International Monetary Fund.
• Quispe-Angoli, Myriam. (2002). Cost and Benefits of Dollarization, Latin America Research Group, Federal Reserve Bank of Atlanta.
• Ribnikar, Ivan. (2004). Finansijski i monetarni sistem u Agendi ekonomskih reformi u Crnoj Gori. Naucniskup (7/5/04), Knjiga 27. Podgorica: Crnogorska akademija nauka i umjetnosti.
• Rose, A. K. (2000). One Money, One Market: the Effect of Common Currencies on the Trade, Economic Policy, vol. 15 (30).
• Swiston, Andrew. (2011). Official Dollarization as a Monetary Regime: Its Effects on El Salvador. Working Paper (June). Washington, D.C: International Monetary Fund.
• Šehovic, Damir. (2014). Theoretical Analisis of the Effescts of Fiscal Policy in Montenegro. TEMJournal. Volume 3 / Number 4.
• Winkler, Adalbert, et al. (2004). Official Dollarization /Eurisation: Motives, Features and Policy Implicatons of Curent Cases. European Central Bank. Occasional Paper Series.

Identyfikatory

DOI

10.14254/2071-8330.2016/9-2/3