Dollarization – A Case Study of Panama, Ecuador, and El Salvador

International Journal of Humanities and Social Science

© 2020 by SSRG - IJHSS Journal

Volume 7 Issue 5

Year of Publication : 2020

Authors : Prof. (Dr.) Deepak Havaldar

10.14445/23942703/IJHSS-V7I5P108

How to Cite?

Prof. (Dr.) Deepak Havaldar, "Dollarization – A Case Study of Panama, Ecuador, and El Salvador," SSRG International Journal of Humanities and Social Science, vol. 7,  no. 5, pp. 69-71, 2020. Crossref, https://doi.org/10.14445/23942703/IJHSS-V7I5P108

Abstract:

This paper observes the effect of dollarization for Panama, Ecuador, and El Salvador. As economists agree that the countries which were facing recession, hyperinflation, and higher interest rates were successful in reducing the interest rates, hyperinflation, and interest rates and successful in increasing foreign investment flow once they go for dollarization.

Keywords:

Currency Board Arrangement, Dollarization, Hyperinflation, Monetary Policy, Risk Prima

References:

[1] Andrew Berg and Eduardo Borensztein, ”The Dollarization Debate, ”Finance and Development, IMF, March 2000.
[2] Bilson, John F.O.: “The Monetary Approach to the Exchange Rate: Some Empirical Evidence ”IMF Staff Papers, March 1978,pp48-75.
[3] Dornbusch, Rudiger,” Expectations and Exchange Rate Dynamics,” Journal of Political Economy, December 1976, pp 1161-1176.
[4] D.Salvatore,” International Economics, ”Wiley 11th Edition,2017.
[5] H.G. Johnson, ”The Case for Flexible Exchange Rates,” in G.N.Halm, Approaches to Greater Flexibility of Exchange Rates’, Princeton University Press,1969.
[6] Maurice Levi, ”International Finance,”5th Edition, Routlledge,2016.
[7] M. Friedman, ”The Case for Flexible Rates” in M .Firedman Essays in Positive Economics,(University of Chicago Press,1953.
[8] Paul Krugman and Maurice Obstfeld,” International Economics,” Pearson, 2009.
[9] S.Edwards and I.I. Magendzo,” Dollarization inflation and Growth, ”NBER Working Paper, December 2001.