Testimony On Full Dollarization
Testimony On Full Dollarization
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Date
1999-04-22
Authors
Calvo, Guillermo A.
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Abstract
I will discuss the motivation and potential benefits of full dollarization, namely,
abandoning domestic currency (identified with the peso) and adopting a foreign currency
(identified with the U.S. dollar), with special reference to emerging-market economies. I will
argue, first, that full dollarization is especially advantageous for countries with large dollar debts,
and, second, that in these economies standard criticisms against full dollarization are largely
unwarranted.
Notes
Presented Before a Joint Hearing of the Subcommittees on
Economic Policy and International Trade and Finance
Washington, DC, April 22, 1999.