...Lula G. Mengesha; Mark J. Holmes Purpose – The purpose of this paper is to address the unresolved outcome of the research on the impact of dollarization on inflation by examining the partially dollarized economy of Eritrea. Design/methodology/approach – Inflation under partial dollarization...

..., the interest rates differential, and M2 exhibit a direct relationship at both time horizons. Practical implications Understanding how macroeconomic conditions influence the supply of US dollars via remittances is fundamental for policy makers in a dollarized economy. In the absence of tools to implement...