TY  - JOUR
AU  - Dominguez,Kathryn M.
TI  - Do Exchange Auctions Work? An Examination of the Bolivian Experience
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3683
PY  - 1991
Y2  - April 1991
UR  - http://www.nber.org/papers/w3683
L1  - http://www.nber.org/papers/w3683.pdf
N1  - Author contact info:
Kathryn M.E. Dominguez
University of Michigan
Department of Economics and Ford School
Weill Hall
735 South State Street
Ann Arbor, MI 48109
Tel: 734-764-9498
Fax: 734-763-9181
E-Mail: kathrynd@umich.edu
AB  - The Bolivian experience suggests that, even in highly indexed economies, exchange rate auctions can work. After introduction of its auction, the Bolsin, not only did the parallel market premium for dollars all but disappear in Bolivia, but the Boliviano exchange rate remained surprisingly stable. This paper examines how the Bolsin accomplished this. The empirical evidence from daily auction data suggests that credit for the Bolsin's success should be attributed largely to central bank policy at the auction rather than the auction as an institution.
ER  -