Testimony On Full Dollarization

Loading...
Thumbnail Image

Files

ciecpn6.pdf (21.47 KB)
No. of downloads: 907

Publication or External Link

Date

1999-04-22

Advisor

Citation

DRUM DOI

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.

Rights