Modeling evaluation of dollarization economic efficiency

Abstract

The paper is devoted to the estimation of the economic effectiveness of dollarization as a type of monetary arrangements. Conceptual models of dollarization are considered. Empirical models of evaluation the impact of dollarization on inflation, interest rates, GDP and export growth are developed. The hypothesis that dollarization is mainly accompanied by lower rates of inflation and money supply growth was generally confirmed. The lower real interest rates under the dollarization arrangement are compensated by less intensive rates of GDP growth and exports.