1. Comments by Ricardo V. Lago
Nora Szrentic
Comments by Ricardo V. Lago

5. Motivation and Conclusions of the paper
Investigate the monetary determinants of deposit euroization ( DE) in 11 post –transition economies
Econometric method : VAR and TVAR
Uses as two variables as determinants :
The exchange rate ( nominal or real )
Interest rate differential
Results :
Floating rates : Symmetry
Fixed o adjustable rates : Hysteresis
Policy Recommendations : Strengthen fiscal and financial fundamentals = Maastricht Criteria

6. Comments 1
Historical Context : Goldization rather than dollarization ?
Fundamental contradiction of International Monetary system
Reserve Currencies are weak
Strong currencies are nor reserve currencies

7. Comments 2 Why dollarization /Euroization at all ?
Trust on Currency = Reputational capital of the government that issues the currency
Deposits are promissory notes : banks / governments can and do default on them
Superior currency
Inferior currency
VAR and TVAR
Floaters : Poland and Czech Republic
Others : Hysteresis or asymmetry
Need to explain declining trend : depending on fiscal /debt sustainability
Mexico 1982 , Argentina 2000 , Greece 201X ?

9. From Dollarization and Euroization to Goldization

10. How much gold over the ground ?