Empirical Analysis for Currency Substitution on the Monetary Policy Management in Central and Eastern European Countries

2014 Fiscal Year Final Research Report

• Project/Area Number: 24730265
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Monetary economics
• Research Institution: Fukushima University
• Principal Investigator: KUMAMOTO Hisao 福島大学, 経済経営学類, 准教授 (30375349)
• Co-Investigator(Renkei-kenkyūsha): KUMAMOTO Masao 東京経済大学, 経済学部, 教授 (30328257)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 通貨代替 / 開発途上国

Outline of Final Research Achievements

We investigated the following analyses: (1) the determinants of currency substitution, (2) the impacts of the degree of currency substitution on nominal exchange rate volatility in Central and Eastern European, Asian and Latin American countries, (3) the extent to which the degree of currency substitution influences on the effects of monetary policy in the DSGE framework. As a result, we showed that the existence of currency substitution should be considered by central banks in currency substitution countries when formulating their monetary policies.

Free Research Field

国際金融論