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dc.contributor.authorSchweickert, Raineren_US
dc.contributor.authorThiele, Raineren_US
dc.contributor.authorWiebelt, Manfreden_US
dc.date.accessioned2009-01-28T14:25:51Z-
dc.date.available2009-01-28T14:25:51Z-
dc.date.issued2005en_US
dc.identifier.citationDiscussion papers Ibero-Amerika-Institut für Wirtschaftsforschung, Göttingen 120en_US
dc.identifier.urihttp://hdl.handle.net/10419/3740-
dc.description.abstractIn this paper, a real-financial CGE model is employed for Bolivia to simulate the macroeconomic and distributional effects of exchange rate policy in a highly dollarized economy. Overall, dollarization appears to matter more through real than through financial-sector effects. The main macroeconomic result of the simulations is that the potential of nominal devaluation to smooth the adjustment path after a negative shock primarily depends on the absence of wage indexation. Only if nominal wages are constant in the short run, devaluation reduces unemployment and cushions the reduction of real GDP induced by the shock. Financial de-dollarization tends to be contractionary in Bolivia but different degrees of financial dollarization hardly change the real sector effects. As concerns distributional effects, nominal devaluation in no circumstance reduces the poverty effect of the external shock. Even the significant short-run macroeconomic expansion that occurs without wage indexation does not translate into significant poverty alleviation, given the offsetting effects of devaluation on real factor incomes, real interest incomes, and real transfers received by households.-
dc.language.isoengen_US
dc.publisherIbero-Amerika-Inst. für Wirtschaftsforschung Göttingen-
dc.publisherIbero-Amerika-Institut für Wirtschaftsforschung, Göttingen-
dc.relation.ispartofseriesDiscussion papers // Ibero America Institute for Economic Research 120-
dc.subject.jelD3-
dc.subject.jelC68-
dc.subject.ddc330-
dc.subject.keywordDollarization-
dc.subject.keywordPoverty-
dc.subject.keywordComputable General Equilibrium Model-
dc.subject.keywordBolivia-
dc.titleMacroeconomic and distributional effects of devaluation in a dollarized economx: A CGE analysis for Boliviaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn503517240en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Discussion Papers, IAI, Universität Göttingen

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