Understanding Dollarization

Footnotes

1	Emerging markets are economies that display some of the hallmarks and efficiencies of a developed economy, but still lack development in some sectors. These economies include countries such as Argentina, Chile, Colombia, Hungary, India, Peru, Turkey, Mexico, Hong Kong, Indonesia and Brazil, among others.
2	We recommend the reader to refer to the Capital Asset Pricing Model (CAPM) to understand this relationship.
3	Real interest rates are the nominal interest rates adjusted for inflation. More detail is provided in Chapter 3. The basic principle is that agents seek a return that allows them to protect their purchasing power.
4	As an example, we can use the production cost of a corporation (African Minerals) that used to have operations ...