The Dollarization Debate

by Salvatore, Dominick; Dean, James W.; Willett, Thomas

• ISBN13: 9780195155358
• ISBN10: 0195155351
• Format: Hardcover
• Copyright: 2003-03-27
• Publisher: Oxford University Press

Summary

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 debatingwhether 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.

Table of Contents

Contributors	ix
Introduction	3	(14)
Dominick Salvatore
James W. Dean
Thomas D. Willett
Part I General Analysis
A Visionary's View
Currency Areas, Exchange Rate Systems, and International Monetary Reform	17	(29)
Robert Mundell
De Facto Dollarization
Unofficial Dollarization in Latin America: Currency Substitution, Network Externalities, and Irreversibility	46	(26)
Edgar L. Feige
Michael Faulend
Velimir Sonje
Vedran Sosic
Pros and Cons
The Pros and Cons of Full Dollarization	72	(30)
Andrew Berg
Eduardo R. Borensztein
Is It Time for a Common Currency for the Americas?	102	(9)
Vittorio Corbo
Dollarization: Myths and Realities	111	(18)
Sebastian Edwards
What Problems Can Dollarization Solve?	129	(11)
Barry Eichengreen
What Use Is Monetary Sovereignty?	140	(14)
Kurt Schuler
One Regime for All Countries?
The OCA Approach to Exchange Rate Regimes: A Perspective on Recent Developments	154	(18)
Thomas D. Willett
Dollarization Does Not Make Sense Everywhere	172	(5)
John Williamson
The Problem of Dollar Encroachment in Emerging Markets	177	(19)
Ronald I. McKinnon
Which Countries in the Americas Should Dollarize?	196	(10)
Dominick Salvatore
Pressures for Currency Consolidation in Insurance and Finance: Are the Currencies of Financially Small Countries on the Endangered List?	206	(15)
George M. Von Furstenberg
Part II Political Economy
Monetary Union: the Political Dimension	221	(17)
Benjamin J. Cohen
Latin American Official Dollarization: Political Economy Aspects	238	(28)
Jurgen Schuldt
The Political Economy of Dollarization in Mexico	266	(17)
Nancy Neiman Auerback
Aldo Flores-Quiroga
Lessons of the Euro for Dollarization: Analytic and Political Economy Perspectives	283	(16)
Harris Dellas
George S. Tavlas
Part III North America
North American Currency Integration: A Canadian Perspective	299	(19)
Thomas J. Courchene
Richard G. Harris
The Merit of a North American Monetary Union	318	(23)
Herbert G. Grubel
Why Canada Needs a Flexible Exchange Rate	341	(24)
John D. Murray
Part IV Latin America
Should Latin America's Common-Law Marriage to the U.S. Dollar Be Legalized? Should Canada's?	365	(10)
James W. Dean
What Exchange Rate Arrangement Works Best for Latin America?	375	(12)
Liliana Rojas-Suarez
A Dollarization/Free-Banking Blueprint for Argentina	387	(14)
Steven H. Hanke
Argentina's Currency Board and the Case for Macroeconomic Policy Coordination in Mercosur	401	(24)
Jose Maria Fanelli
Cuba: ``Dollarization'' and ``Dedollarization''	425	(24)
Archibald R.M. Ritter
Nicholas P. Rowe
Index	449