Ozbilgin, H. Murat - Türkiye Cumhuriyet Merkez Bankası - 2010
This paper studies welfare gains from disinflation in the presence of currency substitution. A distinctive small open … economy model with currency substitution and intermediated working capital is constructed for this objective. It is found that … implies that, higher currency substitution is welfare enhancing for high inflation rates but not for moderate and low …