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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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Should Latin America's Common‐Law Marriage to the U.S. Dollar Be Legalized?

Should Latin America's Common‐Law Marriage to the U.S. Dollar Be Legalized?

Chapter:
(p.365) 20 Should Latin America's Common‐Law Marriage to the U.S. Dollar Be Legalized?
Source:
The Dollarization Debate
Author(s):

James W. Dean (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0195155351.003.0021

Informal or “de facto” dollarization, which is well established all over Latin America, may be irreversible. It has rendered monetary policy relatively impotent, and active exchange rate policy dangerous. Thus, full, de jure dollarization may be the only remaining option for these countries.

Keywords:   de facto dollarization, Latin America, currency

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