TY  - GEN
AU  - Calvo, Guillermo A.
AU  - Vegh, Carlos A.
TI  - Currency substitution in developing countries: an introduction
PB  - MF
KW  - CURRENCIES
KW  - MONETARY POLICY
KW  - INTERNATIONAL MONETARY SYSTEM
KW  - EXCHANGE RATE
KW  - INFLATION
KW  - MONEY
N2  -   This paper reviews the main policy and analytical issues related to currency subsitutions in developing countries.  The paper discusses, first, whether currency substitution should be encouraged or not; second, how the presence of currency substitution affects the choice of nominal anchors in inflation stabilization programs; third, the effects of changes in the rate of growth of the money supply on the real exchange rate; fourth, the interaction between inflationary finance and currency substitution; and, finally, issues related to the empirical verification of the currency substitution hypothesis.  (Extracted from document)
ER  -