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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.

Suggested Citation

  • 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.
  • Handle: RePEc:cai:meddbu:med_130_0015

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    References listed on IDEAS

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    10. repec:cto:journl:v:20:y:2000:i:2:p:179-213 is not listed on IDEAS
    11. 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 312-334, May.
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