Measurement of Co-Circulation of Currencies / Russell Krueger, Jiming Ha.

Format:

Book

Government document

Author/Creator:

Krueger, Russell.

Contributor:

Ha, Jiming.

Series:

IMF Working Papers; Working Paper ; No. 1995/034

IMF Working Papers

Language:

English

Physical Description:

1 online resource (42 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 1995.

Language Note:

English

Summary:

“Co-circulation” involves the regular use of two or more currencies within an economy. This paper examines methodologies to measure the extent to which foreign currencies are circulated within an economy. Ample anecdotal evidence exists that the U.S. dollar, DM, and other currencies are widely used outside their home countries, as general mediums of exchange, as speculative instruments, or as means of saving. Co-circulation is rarely estimated, which can result in serious errors in statistical estimates of international capital flows and monetary aggregates. We examine a variety of measurement techniques that might be used in various situations. However, estimation remains difficult or impossible in some settings. Limited evidence available suggests that co-circulation is widespread and large scale in some countries. In the final section, we discuss some policy implications of co-circulation regarding seigniorage, inflation control, and the partial integration of monetary systems that accompanies co-circulation. An appendix by Roman Zytek discusses possible sampling biases in measuring co-circulation due to segmentation in markets.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

ISBN:

9786613776792

9781462314744

1462314740

9781455299911

145529991X

9781281155436

1281155438

9781455288700

1455288705