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Applied Economics Letters Volume 4, 1997 - Issue 3
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Original Articles

Currency substitution and indexed money

Francisco G. Carneiro
&
Joao R. Faria
Pages 163-166 | Published online: 05 Oct 2010
 
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Abstract

The paper tests the hypothesis that the presence of indexed money may rule out a process of currency substitution in contexts of persistent high inflation. Estimates for the case of Brazil using monthly data for the period 1985 to 1993 and cointegration techniques offer support for that.

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