The Dollarization Debate

by Dominick Salvatore (Editor), James W. Dean (Editor), Thomas Willett (Editor)

Overview

This book takes a global approach, with an emphasis on North and Latin America respectfully, by discussing one of today's most controversial topics in business; Dollarization. With the collapse of the former Soviet Union, and the formation of the Euro in Europe, many countries and debating whether or not a common currency is in their best interest. This intriguing volume brings together the leading participants in the current dollarization debates. Many advocate the notion of a common currency, while others feel that in doing so will create financial costs for all that take part, with the severity varying from country to country.

Product Details

ISBN-13:	9780198035367
Publisher:	Oxford University Press
Publication date:	03/27/2003
Sold by:	Barnes & Noble
Format:	eBook
File size:	3 MB

About the Author

Fordham University, NY

Simon Frazer University

Claremont Institute for Economic Policy Studies

Table of Contents

ContributorsIntroduction, Dominick Salvatore, James W. Dean, and Thomas D. WillettPart I. General AnalysisA Visionary's View1. Currency Areas, Exchange Rate Systems, and International Monetary Reform, Robert MundellDe Facto Dollarization2. Unofficial Dollarization in Latin America: Currency Substitution, Network Externalities, and Irreversibility, Edgar L. Feige, Michael Faulend, Velimir &Sonje, and Vedran &So&sićPros and Cons3. The Pros and Cons of Full Dollarization, Andrew Berg and Eduardo R. Borensztein4. Is It Time for a Common Currency for the Americas?, Vittorio Corbo5. Dollarization: Myths and Realities, Sebastian Edwards6. What Problems Can Dollarization Solve?, Barry Eichengreen7. What Use Is Monetary Sovereignty?, Kurt SchulerOne Regime for All Countries?8. The OCA Approach to Exchange Rate Regimes: A Perspective on Recent Developments, Thomas D. Willett9. Dollarization Does Not Make Sense Everywhere, John Williamson10. The Problem of Dollar Encroachment in Emerging Markets, Ronald I. McKinnon11. Which Countries in the Americas Should Dollarize?, Dominick Salvatore12. Pressures for Currency Consolidation in Insurance and Finance: Are the Currencies of Financially Small Countries on the Endangered List?, George M. von FurstenbergPart II. Political Economy13. Monetary Union: The Political Dimension, Benjamin J. Cohen14. Latin American Official Dollarization: Political Economy Aspects, Jürgen Schuldt15. The Political Economy of Dollarization in Mexico, Nancy Neiman Auerbak and Aldo Flores-Quiroga16. Lessons of the Euro for Dollarization: Analytic and Political Economy Perspectives, Harris Dellas and George S. TavlasPart III. North America17. North American Currency Integration: A Canadian Perspective, Thomas J. Courchene and Richard G. Harris18. The Merit of a North American Monetary Union, Herbert G. Grubel19. Why Canada Needs a Flexible Exchange Rate, John D. MurrayPart IV. Latin America20. Should Latin America's Common-Law Marriage to the U.S. Dollar Be Legalized? Should Canada's?, James W. Dean21. What Exchange Rate Arrangement Works Best for Latin America?, Liliana Rojas-Suarez22. A Dollarization/Free-Banking Blueprint for Argentina, Steven H. Hanke23. Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur, José María Fanelli24. Cuba: "Dollarization" and "Dedollarization", Archibald R. M. Ritter and Nicholas P. RoweIndex

Editorial Reviews

Dollarization is currently a very hot topic and I think the coverage in the media of the pros and cons of dollarization has been confusing and incomplete. This is an important and timely topic; it is useful to summerize the main findings of the research. There has also been a great deal of discussion among policymakers and it is useful toput that discussion in context. This should be a fascinating read for those interested in global macroeconomics and the problems of exchange rate management and stability—Linda Tesar, Professor of Economics, University of Michigan

"Among leading experts contributing to this collection , some advocate dollarization, some advocate fixed exchange rates, and some are flexible. Many adopt the view that all exchange rate regimes have costs as well as benefits, and that the cost-benefit ration will vary across countries."—Business Horizons

From the Publisher