El Departamento de Administración de la Facultad de Economía y Negocios de la Universidad de Chile, tienen el agrado de invitarle al Seminario Académico:
Título: Capital Flow Management Measures and Dollarization
Autoras: Eugenia Andreasen (presentadora), Departamento de Economía FEN UChile y Victoria Nuguer, Inter-American Development Bank (IADB).
Abstract:
This paper studies from an empirical and theoretical perspective the systemic and bank-level effects of imposing reserve requirements in foreign currency (RRF C ) in an economy with a heavily dollarized financial system. The paper empirically characterizes banks’ responses to the RRF C carried out by the Peruvian Central Bank since 2008 with the objective of stabilizing the financial market and meeting its policy targets. The results suggest that the RRF C is effective in reducing the overall level of credit in the economy and that banks’ response in terms of credit is heterogeneous depending on their ex-ante foreign funding ratio, i.e., the ratio of deposits in dollars to total loans. Motivated by the empirical insights, the paper builds a DSGE small-open-economy model with financial frictions `a la GertlerKaradi-Kiyotaki, where bank heterogeneity and financial dollarization are introduced to evaluate the effectiveness of the RRF C in reducing financial dollarization and improving financial resilience.
