Financial de-dollarization in Bolivia

  • Marco Antonio Del Río Rivera Universidad Autónoma Gabriel René Moreno
  • Casto Martín Montero Kuscevic American University of Beirut
Keywords: dollarization, monetary policy, cointegration models
JEL Classification: E42, E52, C32

Abstract

Using data for the period 1990-2010 and a portfolio optimization approach, we identify the causes of the process of financial de-dollarization in Bolivia (bolivianization). Cointegration tests showed the existence of a long-run relationship between de-dollarization and the optimizing portfolio approach. Additionally, we found that the Tax to Financial Transactions and the exchange rate spread are the most influential variables to determine bolivianization.

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Published
01-01-2014
How to Cite
Del Río RiveraM., & Montero KuscevicC. (2014). Financial de-dollarization in Bolivia. Estudios Económicos, 29(1), 3-25. https://doi.org/10.24201/ee.v29i1.76
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