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A Framework for Analysing Dollarization

In: Monetary Integration and Dollarization

Author

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  • Paul Davidson

Abstract

This book deals with the economic consequences of monetary integration, which has long been dominated by the Optimal Currency Area (OCA) paradigm. In this model, money is perceived as having developed from a private sector cost minimization process to facilitate transactions. Not surprisingly, the book argues, the main advantage of monetary integration in the OCA context is the reduction of transaction costs, yet the validity of OCA to analyze processes of monetary integration seems to be limited at best.

Suggested Citation

  • Paul Davidson, 2006. "A Framework for Analysing Dollarization," Chapters, in: Matías Vernengo (ed.), Monetary Integration and Dollarization, chapter 13, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:3483_13
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    Cited by:

    1. Bresser-Pereira, Luiz Carlos, 2004. "Exchange rate: fix, float, or manage it?," Textos para discussão 135, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).

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    Keywords

    Economics and Finance;

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