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The Dollarization Debate$
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Dominick Salvatore, James W. Dean, and Thomas D. Willett

Print publication date: 2003

Print ISBN-13: 9780195155358

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195155351.001.0001

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Lessons of the Euro for Dollarization

Lessons of the Euro for Dollarization

Analytic and Political Economy Perspectives

Chapter:
(p.283) 16 Lessons of the Euro for Dollarization
Source:
The Dollarization Debate
Author(s):

Harris Dellas

George S. Tavlas

Publisher:
Oxford University Press
DOI:10.1093/0195155351.003.0017

This chapter examines the implications of the euro experiment for dollarization in Latin America. It is argued that for Latin American countries, the potential political benefits of a new currency appears to be less than for euro-area countries. Dollarization would entail greater political costs than a currency board or a flowing exchange rate regime.

Keywords:   euro, European monetary union, dollarization, Latin America, currency

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