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Dollarization in Argentina

Author

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  • Francois R. Velde
  • Marcelo Veracierto

Abstract

Several countries are seriously considering the abandonment of their currency and its formal replacement with the U.S. dollar. Since 1991, Argentina has backed its currency with 100 percent reserves and successfully pegged it to the dollar. In doing so, it has already grappled with many issues that confront would-be adopters of the dollar. Moving to full-fledged dollarization might offer a solution to recurring crises that are partly driven by expectations that Argentina might abandon its peg.

Suggested Citation

  • Francois R. Velde & Marcelo Veracierto, 2000. "Dollarization in Argentina," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 24(Q I), pages 24-37.
    • Handle: RePEc:fip:fedhep:y:2000:i:qi:p:24-37:n:v.24no.1
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kurasawa, Kazutaka & Marty, Alvin L., 2007. ""Optimal" inflation under dollarization," Journal of International Money and Finance, Elsevier, vol. 26(2), pages 251-264, March.
    2. Jean-François Ponsot, 2002. "The dollarization of emergent economies [La dollarisation des économies émergentes]," Working Papers hal-01526893, HAL.
    3. Marcelo Vieta, 2013. "The emergence of the empresas recuperadas por sus trabajadores: A political economic and sociological appraisal of two decades of self-management in Argentina," Euricse Working Papers 1355, Euricse (European Research Institute on Cooperative and Social Enterprises).
    4. Le Maux, Laurent, 2003. "Dollarisation officielle : analyse critique et alternative," L'Actualité Economique, Société Canadienne de Science Economique, vol. 79(3), pages 367-391, Septembre.
    5. Henri Bourguinat & Larbi Dohni, 2002. "La dollarisation comme solution en dernier ressort," Revue Française d'Économie, Programme National Persée, vol. 17(1), pages 57-96.
    6. Rachel McCulloch & Blake LeBaron, 2000. "Floating, Fixed, or Super-Fixed? Dollarization Joins the Menu of Exchange-Rate Options," American Economic Review, American Economic Association, vol. 90(2), pages 32-37, May.
    7. Miss Liliana B Schumacher & Mr. Jiro Honda, 2006. "Adopting Full Dollarization in Postconflict Economies: Would the Gains Compensate for the Losses in Liberia?," IMF Working Papers 2006/082, International Monetary Fund.
    8. PONSOT, Jean-François, 2002. "La dollerisation des économies émergentes," LATEC - Document de travail - Economie (1991-2003) 2002-02, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    9. Jérôme Blanc, 2014. ""Argentina o dolarización", ou quand la monnaie revient à la souveraineté," Post-Print halshs-01016336, HAL.
    10. Ferro, Gustavo, 2001. "Currency Board: From Stabilization to Full Dollarization? The Argentine Experience," MPRA Paper 15353, University Library of Munich, Germany.
    11. A. G. Malliaris, 2005. "Global monetary instability: The role of the IMF, the EU and NAFTA," World Scientific Book Chapters, in: Economic Uncertainty, Instabilities And Asset Bubbles Selected Essays, chapter 20, pages 323-343, World Scientific Publishing Co. Pte. Ltd..
    12. Paul Hallwood & Ian W. Marsh & Jorg Scheibe, 2001. "Official Dollarization in Latin America: Could it Work?," Working papers 2001-06, University of Connecticut, Department of Economics.
    13. Russell W. Cooper & Hubert Kempf, 2001. "Dollarization and the conquest of hyperinflation in divided societies," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 25(Sum), pages 3-12.
    14. Huberto M. Ennis, 2000. "Banking and the political support for dollarization," Working Paper 00-12, Federal Reserve Bank of Richmond.
    15. Alexandre MINDA (LEREPS-GRES), 2005. "Official dollarization : a last resort solution to financial instability in Latin America ?," Cahiers du GRES (2002-2009) 2005-02, Groupement de Recherches Economiques et Sociales.
    16. Kamin, Steven B. & Ericsson, Neil R., 2003. "Dollarization in post-hyperinflationary Argentina," Journal of International Money and Finance, Elsevier, vol. 22(2), pages 185-211, April.
    17. Ferro, Gustavo, 2001. "De bancos centrales, juntas monetarias y dolarización [On central banks, currency boards and dollarization]," MPRA Paper 15354, University Library of Munich, Germany.
    18. Hsing, Y., 2004. "Responses of Argentine Output to Shocks to Monetary Policy, Fiscal Policy and Exchange Rates: A VAR Model," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(1).
    19. Gaetano Antinolfi & Todd Keister, 2001. "Dollarization as a monetary arrangement for emerging market economies," Review, Federal Reserve Bank of St. Louis, vol. 83(Nov.), pages 29-40.
    20. Alexandre Minda, 2005. "La dollarisation intégrale : une option monétaire de dernier ressort pour l'Amérique latine ?," Mondes en développement, De Boeck Université, vol. 130(2), pages 15-39.

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    Keywords

    Argentina; Dollar; Money;
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