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The Dollarization Debate$
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Dominick Salvatore, James W. Dean, and Thomas D. Willett

Print publication date: 2003

Print ISBN-13: 9780195155358

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195155351.001.0001

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Lessons of the Euro for Dollarization

Lessons of the Euro for Dollarization

Analytic and Political Economy Perspectives

(p.283) 16 Lessons of the Euro for Dollarization
The Dollarization Debate

Harris Dellas

George S. Tavlas

Oxford University Press

This chapter examines the implications of the euro experiment for dollarization in Latin America. It is argued that for Latin American countries, the potential political benefits of a new currency appears to be less than for euro-area countries. Dollarization would entail greater political costs than a currency board or a flowing exchange rate regime.

Keywords:   euro, European monetary union, dollarization, Latin America, currency

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