Currency substitution, portfolio diversification and money demand

Detalhes bibliográficos
Autor(a) principal: Freitas, Miguel Lebre de
Data de Publicação: 2006
Outros Autores: Veiga, Francisco José
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/5756
Resumo: We extend the Thomas (1985) dynamic optimising model of money demand and currency substitution to the case in which the individual has restricted or no access to foreign currency denominated bonds. In this case Currency Substitution decisions and Asset Substitution decisions are not separable. The results obtained suggest that the significance of an expected exchange rate depreciation term in the demand for domestic money provides a valid test for the presence of currency substitution. Applying this approach to six Latin American countries, we find evidence of currency substitution in Colombia, Dominican Republic and Venezuela, but not in Brazil and Chile.
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spelling Currency substitution, portfolio diversification and money demandMoney demandCurrency substitutionDollarisationPortfolio choice.F41E41G11Social SciencesWe extend the Thomas (1985) dynamic optimising model of money demand and currency substitution to the case in which the individual has restricted or no access to foreign currency denominated bonds. In this case Currency Substitution decisions and Asset Substitution decisions are not separable. The results obtained suggest that the significance of an expected exchange rate depreciation term in the demand for domestic money provides a valid test for the presence of currency substitution. Applying this approach to six Latin American countries, we find evidence of currency substitution in Colombia, Dominican Republic and Venezuela, but not in Brazil and Chile.Blackwell PublishingUniversidade do MinhoFreitas, Miguel Lebre deVeiga, Francisco José20062006-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/5756eng"Canadian Journal of Economics". ISSN 0008-4085 39:3 (2006) 719-743.0008-408510.1111/j.1540-5982.2006.00366.xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-05-11T07:40:26Zoai:repositorium.sdum.uminho.pt:1822/5756Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-05-11T07:40:26Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Currency substitution, portfolio diversification and money demand
title Currency substitution, portfolio diversification and money demand
spellingShingle Currency substitution, portfolio diversification and money demand
Freitas, Miguel Lebre de
Money demand
Currency substitution
Dollarisation
Portfolio choice.
F41
E41
G11
Social Sciences
title_short Currency substitution, portfolio diversification and money demand
title_full Currency substitution, portfolio diversification and money demand
title_fullStr Currency substitution, portfolio diversification and money demand
title_full_unstemmed Currency substitution, portfolio diversification and money demand
title_sort Currency substitution, portfolio diversification and money demand
author Freitas, Miguel Lebre de
author_facet Freitas, Miguel Lebre de
Veiga, Francisco José
author_role author
author2 Veiga, Francisco José
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Freitas, Miguel Lebre de
Veiga, Francisco José
dc.subject.por.fl_str_mv Money demand
Currency substitution
Dollarisation
Portfolio choice.
F41
E41
G11
Social Sciences
topic Money demand
Currency substitution
Dollarisation
Portfolio choice.
F41
E41
G11
Social Sciences
description We extend the Thomas (1985) dynamic optimising model of money demand and currency substitution to the case in which the individual has restricted or no access to foreign currency denominated bonds. In this case Currency Substitution decisions and Asset Substitution decisions are not separable. The results obtained suggest that the significance of an expected exchange rate depreciation term in the demand for domestic money provides a valid test for the presence of currency substitution. Applying this approach to six Latin American countries, we find evidence of currency substitution in Colombia, Dominican Republic and Venezuela, but not in Brazil and Chile.
publishDate 2006
dc.date.none.fl_str_mv 2006
2006-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/5756
url http://hdl.handle.net/1822/5756
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv "Canadian Journal of Economics". ISSN 0008-4085 39:3 (2006) 719-743.
0008-4085
10.1111/j.1540-5982.2006.00366.x
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Blackwell Publishing
publisher.none.fl_str_mv Blackwell Publishing
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv mluisa.alvim@gmail.com
_version_ 1817545399703961600

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