This article discusses the impact of dollarization in Ecuador, Panama and El Salvador as well Argentine convertibility system. We found that adoption a more stable currency has had positive results those countries.
 Key words: Dollarization, Inflation, Central Bank, Balance Trade, Gold Standard, Cash Ratio, Exports, Flexible Exchange Rates.
 JEL Classification: E42, E44, E58.
 Re...

In this paper, I examine the effects of money supply, aggregate spending, and aggregate supply shocks on real US stock prices in a structural vector autoregression framework. Overall, the empirical results indicate that each macro shock has important effects on real stock prices. The real stock price impulse responses to the various macro shocks conform to the standard present-value equity valu...

This paper uses Hansen and Jagannathan’s (1991) volatility bounds to evaluate models with idiosyncratic consumption risk. I show that idiosyncratic risk does not change the volatility bounds at all when consumers have CRRA preferences and the distribution of the idiosyncratic shock is independent of the aggregate state. Following Mankiw (1986), I then show that idiosyncratic risk can help to en...

We construct the first general equilibrium model of foreign direct investment (FDI) in the banking sector to compare the welfare consequences of two types of liberalization. We find that liberalizing by lifting restrictions on inflows of foreign loans is more likely to reduce the average interest rate spread (markup) than liberalizing by allowing FDI in the banking sector. Using heterogeneous, ...

This paper evaluates VAR models designed to analyse the monetary policy transmission mechanism in the United States by considering three issues: specification, identification, and the effect of the omission of the long-term interest rate. Specification analysis suggests that only VAR models estimated on a single monetary regime feature parameters stability and do not show signs of mis-specifica...

A life-cycle model with equilibrium default in which consumers with and without temptation coexist is constructed to evaluate the 2005 bankruptcy law reform and other counterfactual reforms. The calibrated model indicates that the 2005 bankruptcy reform achieves its goal of reducing the number of bankruptcy filings, as seen in the data, but at the cost of loss in social welfare. The creditor-fr...

In May 1927, the German central bank intervened indirectly to reduce lending to equity investors. The crash that followed ended the only stock market boom during Germany’s relative stabilization 1924-28. This paper examines the factors that lead to the intervention as well as its consequences. We argue that genuine concern about the ‘exuberant’ level of the stock market, in addition to worries ...

In this study, the relation between consumer credit and real economic activity during the Great Moderation is studied in a dynamic stochastic general equilibrium model. Our model economy is populated by two diff erent household types. Investors, who hold the economy’s capital stock, own the fi rms and supply credit, and workers, who supply labor and demand credit to fi nance consumption. Furthe...

Antibodies raised against recombinant Loxosceles intermedia dermonecrotic protein isoform 1 (rLiD1) display neutralizing capacity for the L. intermedia whole venom. We previously found that an immunodominant continuous B-cell epitope, recognized by these antibodies corresponds to a region of the protein known to be involved in the active site. In this study, we extend previous work by preparing...