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La dollarisation intégrale : une option monétaire de dernier ressort pour l'Amérique latine ?

  • Alexandre Minda

This article will examine the question of complete dollarization in Latin America. Because of the opportunity cost of dollarization, replacing a national currency with a foreign currency is a solution of last resort to the financial instability of Latin American economies. To clarify the discussion, a typology of dollarization regimes is drawn up in order to make an inventory of officially dollarized countries and territories. To determine what is at stake in such decisions, advantage cost analysis mentions, first of all, the expected benefits highlighted by the advocates of full dollarization. An examination of its potential impact will then allow us to evaluate the induced costs of the disappearance of national currencies. Finally, by looking at Latin American countries which have selected this monetary option, the limits of adopting such a solution are mentioned, particularly by the fact that the disappearance of national currencies leads to the loss of a powerful symbol of national identity.

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Article provided by De Boeck Université in its journal Mondes en développement.

Volume (Year): 130 (2005)
Issue (Month): 2 ()
Pages: 15-39

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Handle: RePEc:cai:meddbu:med_130_0015
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  1. Francois R. Velde & Marcelo Veracierto, 1999. "Dollarization in Argentina," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Jun.
  2. Juan Luis Moreno-Villalaz, 1999. "Lessons from the Monetary Experience of Panama: A Dollar Economy with Financial Integration," Cato Journal, Cato Journal, Cato Institute, vol. 18(3), pages 421-439, Winter.
  3. William C. Gruben & Mark A. Wynne & Carlos E.J.M. Zarazaga, 2001. "Dollarization and monetary unions: implementation guidelines," Center for Latin America Working Papers 0201, Federal Reserve Bank of Dallas.
  4. Andrew Berg & Paolo Mauro & Eduardo Borensztein, 2002. "An Evaluation of Monetary Regime Options for Latin America," IMF Working Papers 02/211, International Monetary Fund.
  5. Gaetano Antinolfi & Todd Keister, 2001. "Dollarization as a monetary arrangement for emerging market economies," Review, Federal Reserve Bank of St. Louis, issue Nov., pages 29-40.
  6. Fischer, Stanley, 1982. "Seigniorage and the Case for a National Money," Journal of Political Economy, University of Chicago Press, vol. 90(2), pages 295-313, April.
  7. Adam Bennett & Eduardo Borensztein & Tomás J. T. Baliño, 1999. "Monetary Policy in Dollarized Economies," IMF Occasional Papers 171, International Monetary Fund.
  8. Calvo, Guillermo A, 2001. "Capital Markets and the Exchange Rate with Special Reference to the Dollarization Debate in Latin America," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 312-34, May.
  9. Frankel, Jeffrey A & Rose, Andrew K, 1996. "The Endogeneity of the Optimum Currency Area Criteria," CEPR Discussion Papers 1473, C.E.P.R. Discussion Papers.
  10. repec:tpr:qjecon:v:117:y:2002:i:2:p:437-466 is not listed on IDEAS
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  12. Frankel, Jeffrey & Rose, Andrew K., 2001. "An Estimate of the Effect of Common Currencies on Trade and Income," Working Paper Series rwp01-013, Harvard University, John F. Kennedy School of Government.
  13. Roberto Chang & Andres Velasco, 1998. "Financial Fragility and the Exchange Rate Regime," NBER Working Papers 6469, National Bureau of Economic Research, Inc.
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