Is It Possible to De-dollarize? The Case of Ecuador

Kenneth Jameson

Working Paper Series, Department of Economics, University of Utah from University of Utah, Department of Economics

Abstract: The policy reform termed dollarization, adoption of a foreign currency as the domestic currency, is widely believed to be irreversible. The paper presents counter examples, while noting that the Latin American "hard pegs" present problems that are more complex. It then uses Ecuador, the longest-lasting of the recent dollarizers, to examine all aspects of the possibility and process of de-dollarizing. Presentation of economic performance before and after dollarization leads to consideration of possible steps that could maintain the policy. Examination of the benefits of de-dollarization follows, with careful consideration of how a process of de-dollarization might be implemented. Since Ecuador may embark on this course, the paper provides a comprehensive and necessary examination of the issues involved

Keywords: Dollarization; Ecuador; de-dollarization; Dollar bloc; exchange rate regime; seigniorage (search for similar items in EconPapers)
JEL-codes: O1 O5 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2003
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in International Journal of Political Economy, Spring 2003, 33(1), pp.42-60

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Persistent link: https://EconPapers.repec.org/RePEc:uta:papers:2003_07

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