Economic Issues

Full Dollarization: The Pros and Cons

By Eduardo Borensztein, Andrew Berg

December 20, 2000

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Eduardo Borensztein, and Andrew Berg. Full Dollarization: The Pros and Cons, (USA: International Monetary Fund, 2000) accessed October 4, 2024

Summary

Analyzes the costs and benefits of full dollarization, or the adoption by one country of another country’s currency. Potential advantages include lower borrowing costs and deeper integration into world markets. But countries lose the ability to devalue, and become dependent on the U.S. Compares with currency board option.

Subject: Banking, Currencies, Currency boards, Dollarization, Exchange rates, Financial crises, Foreign exchange, Monetary policy, Money

Keywords: Currencies, Currency, Currency boards, Currency risk, Devaluation, Dollar, Dollarization, EI, Exchange arrangement, Exchange rates, Foreign currency, Global, Money base, Unit of account

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Economic Issues No. 2000/004

  • Stock No:

    EIIEA024

  • ISBN:

    9781557759931

  • ISSN:

    1020-5098

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