in Review of Finance
March 2015; p ublished online September 2014 .
Journal Article. Subjects: Money and Interest Rates; Monetary Policy, Central Banking, and the Supply of Money and Credit; Economics; Banking; Financial Regulation; Market Structure, Firm Strategy, and Market Performance. 17902 words.
We study the risk-taking channel of monetary policy in Bolivia, a dollarized country where monetary changes are transmitted exogenously from the USA. We find that a lower policy rate spurs...