Exchange Rate Volatility and Productivity Growth : the Role of Liability Dollarization

  • Kenza Benhima
  • Published 2010


This paper studies how liability dollarization conditions the e ect of exchange rate exibility on growth. It develops a model with credit-constrained rms facing liquidity shocks denominated in tradables while their revenues are both in tradable and nontradables. With frictions in the reallocation between tradables and nontradables, a peg is more growth… (More)

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