Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212567 
Authors: 
Year of Publication: 
2005
Series/Report no.: 
BOFIT Discussion Papers No. 15/2005
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
The analysis of external economic relations of Russia reveals a paradox: while Europe is the main trade and direct investment partner of Russia, this is far from being the case concerning its currency s role in Russia's financial activities.The dollar is much preferred by economic agents for financial operations.This paper proposes a disaggregated approach to this issue by separating the means of exchange and store of value components of the use of substitution currencies.The influence of three main factors (inertial component, real trade relations and exchange rate fluctuations) on the relative demand for the euro by Russian economic agents is tested for the period 1999-2004.Finally we suggest a theoretical interpretation of the results based on the conventions theory approach.
Subjects: 
dollarisation
euroisation
transition
Russia
currency substitution
asset substitution
network externalities
hysteresis
conventions
JEL: 
E52
E41
F31
F41
G20
Persistent Identifier of the first edition: 
ISBN: 
952-462-796-5
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.