Dollarization, Economic Growth and Employment

Soto, Raimundo

Abstract

Dollarization, Economic Growth and Employment

Raimundo Soto

Pontifical Catholic University of Chile - Institute of Economics

December, 21 2009

Economics Letters, Vol. 105, No. 1, 2009

Abstract:
Dollarization brought price stability and higher economic growth to Ecuador. Nevertheless, unemployment remained stubbornly high. Two opposing forces explain this result: Sustained growth led to higher labor demand but price stabilization triggered substitution effects by cheaper intermediate goods and capital.

Keywords: dollarization, employment, economic growth

JEL Classification: E24, E27, E65, C5

working papers series

Date posted: December 26, 2009

Suggested Citation

Soto, Raimundo, Dollarization, Economic Growth and Employment (December, 21 2009). Economics Letters, Vol. 105, No. 1, 2009. Available at SSRN: http://ssrn.com/abstract=1526571

Contact Information

Raimundo Soto (Contact Author)

Pontifical Catholic University of Chile - Institute of Economics ( email )

Casilla 76
Correo 17
Santiago
Chile