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WHAT CAUSES BANK ASSET SUBSTITUTION IN KAZAKHSTAN? EXPLAINING CURRENCY SUBSTITUTION IN A TRANSITION ECONOMY

dc.contributor.authorEicher, Sharonen_US
dc.date.accessioned2006-08-01T16:15:44Z
dc.date.available2006-08-01T16:15:44Z
dc.date.issued2004-05-01en_US
dc.identifier.otherRePEc:wdi:papers:2004-688en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/40074en_US
dc.description.abstractDollarization comes in several forms. The type that this paper examines is asset substitution, when savers hold dollar assets in bank accounts, instead of local currency. It is limited to the transition economy of Kazakhstan. This paper estimates demand for dollar accounts and shows that avoidance of inflation risk, rather than avoidance of exchange rate devaluation of savings, is the most important in explaining dollarization. This result is unexpected. This study examines data from Kazakhstan. Kazakhstan is seen as having a strong banking system and a healthy economy for a former Soviet Republic. It is seen as one of the most market-oriented, FSU countries. However, Kazakhstan also has a large demand for a means of storing savings in dollars, rather than in the local currency. This is particularly curious, when the local currency is appreciating relative to the U.S. dollar. This demand in less prosperous FSU countries is likely to be even greater. The paper combines data and statistical methods with anecdotal information in order to improve our understanding of a paradoxical occurrence.en_US
dc.format.extent35566 bytes
dc.format.extent3151 bytes
dc.format.extent405945 bytes
dc.format.mimetypetext/plain
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dc.format.mimetypeapplication/pdf
dc.language.isoen_USen_US
dc.relation.ispartofseries688en_US
dc.titleWHAT CAUSES BANK ASSET SUBSTITUTION IN KAZAKHSTAN? EXPLAINING CURRENCY SUBSTITUTION IN A TRANSITION ECONOMYen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/40074/3/wp688.pdfen_US
dc.owningcollnameWilliam Davidson Institute (WDI) - Working Papers


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