Efekty dolaryzacji oficjalnej w Ameryce Południowej
The effects of official dollarization in South America

Summary/Abstract: Official dollarization is a strategy for monetary and exchange rate policy, which means resignation from national currencies. It is a solution which can be used for different purposes, both offensive and defensive, as evidenced by the examples of Ecuador, El Salvador and Panama. The description of the meaning and effects of dollarization may be important both in the context of developing countries as well as in terms of the issue of global monetary order, an element of which is among others monetary integration in the form of the euro area. The official dollarization literature includes Berg and Borensztein’s work [2000] about the pros and cons of official dollarization, Chang and Velasco’s [2002] on the consequences of dollarization for prosperity, Barro’s [1999] which is the official dollarization recommendation for South America countries, Edwards’ [2002] and Edwards and Magendzo’s [2003] containing empirical testing of the effects of official dollarization for the economic growth. The description and assessment of the effects of monetary policy is an important issue which fits into a much larger current issues of global monetary order determining the significance of currencies of particular countries and currency areas and thus their economies in the international division of labor. Official dollarization and the entry to the euro zone despite their differences contain common elements, such as the abandonment of the exchange rate policy and the reduction of the importance of monetary policy, which confirms the usefulness of this study.

• Details
• Contents