Dollarization and Economic Performance: An Empirical Investigation / Sebastian Edwards.

Format:

Book

Author/Creator:

Edwards, Sebastian.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8274.

NBER working paper series no. w8274

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Dollarization and Economic Performance

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

In this paper I investigate the historical record of countries that have lived under a 'dollarized' monetary system. As it turns out, this is a very small group of counties, most of which have operated under very special circumstances, and for which there are very limited data. The results reported in this paper suggests that, when compared to other countries, the dollarized nations have: (a) have had significantly lower inflation; (b) grown at a significantly lower rate; (c) have had a similar fiscal record; (d) have not been spared from major current account reversals. Additionally, my analysis of Panama's case suggests that external shocks result in greater costs - in terms of lower investment and growth - in dollarized than in non-dollarized countries.

Notes:

Print version record

May 2001.