The Pros and Cons of Full Dollarization
This IMF working paper analyzes the costs and benefits of full dollarization compared to its closes alternative, a currency board. The paper lists several advantages and disadvantages while reviewing how various country characteristics influence the balance of arguments.
Content: Article | Authors: Andrew Berg, Eduardo Borensztein | Source: IMF | Subjects: Economics, International
Herd Behavior in Financial Markets – A Review
This 33-page .pdf IMF paper provides an overview of recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What successes hav existing studies had in identifying such behavior? And what effect does herding have on financial markets?
Content: Article | Authors: Sunil Sharma, Sushil Bikhchandani | Source: IMF | Subjects: Finance, Market/Investment | Industry: Investing