In developing economies, significant amounts of financial intermediation take place in foreign currency, a phenomenon referred to as dollarization. In this video, HUSNU DALGIC analyzes dollarization and its impacts. Looking at data on households and companies as well as broader economic trends, Dalgic’s work calls into question the broadly held assumption that dollarization leads to financial instability. Defining dollarization as a ‘within country insurance arrangement’, the research shows how borrowing and lending in a foreign currency can bring significant benefits.
For generations, the University of Mannheim has been preparing students to take on leadership roles in business, academia, and society. One of the university’s strengths in this task is its profile, which is characterized by the economic and social sciences. It is in these fields that the University of Mannheim has repeatedly been ranked as one of the top 20 European research institutions. Key focuses of Mannheim researchers include decision-making processes and elections, governance, regulation, competition and innovation, migration and multilingualism, and the culture of change. The campus surrounding Mannheim’s baroque palace is a place where bright minds from across the globe come together to learn, discuss, research, and prepare to make their mark on the world.
The Collaborative Research Center (CRC) TR 224 – EPoS is a cooperation between the University of Bonn and the University of Mannheim. Funded by the German Research Foundation (DFG), it aims to analyze and provide policy proposals that address three key societal challenges: how to promote equality of opportunity; how to regulate markets in light of the internationalization and digitalization of economic activity; and how to safeguard the stability of the financial system.
Financial dollarization in emerging markets: Efficient risk sharing or prescription for disaster?
Published in 2021
Exorbitant privilege and exorbitant duty
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Financial crises, dollarization, and lending of last resort in open economies
Published in 2020