Abstract:

Dollarization, Low-income developing countries, Global Financial Crisis 2008-2009, Exchange rate appreciation, Sovereign risk, Econometric models, deposit dollarization, GMM, impulse response, flight to quality., currency, deposits, foreign currency, exchange rate movements, liquidity, domestic currency, demand, depreciation, inflation, low-income countries, central banks, total deposits, money, asset, monetary policy, local currency, assets, monetary instruments, capital account, domestic economy, exchange-rate, nominal exchange rate, uncertainty, monetary policy transmission mechanism, currency depreciations, saddle path, price inflation, effect of exchange rate changes, capital controls,