Full Dollarization: The Pros and Cons
December 20, 2000
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Analyzes the costs and benefits of full dollarization, or the adoption by one country of another country’s currency. Potential advantages include lower borrowing costs and deeper integration into world markets. But countries lose the ability to devalue, and become dependent on the U.S. Compares with currency board option.
Subject: Banking, Currencies, Currency boards, Dollarization, Exchange rates, Financial crises, Foreign exchange, Monetary policy, Money
Keywords: Currencies, currency, Currency boards, currency risk, devaluation, dollar, Dollarization, EI, exchange arrangement, Exchange rates, foreign currency, Global, money base, unit of account
Pages:
22
Volume:
2000
DOI:
Issue:
004
Series:
Economic Issues No. 2000/004
Stock No:
EIIEA024
ISBN:
9781557759931
ISSN:
1020-5098
