The Calculus of Dollarisation

Central Banking, Vol. 11, No. 2, pp. 45-57, 2000

14 Pages Posted: 26 Apr 2011

Date Written: November 1, 2000


Understanding dollarisation and related debates requires an appreciation of what might be called the "calculus of dollarisation," i.e., a tally of real and perceived costs and benefits of full dollarisation (the adoption of the foreign currency such as the dollar as legal tender in a given country or territory). This paper provides such an analysis from the perspectives of both a dollarising country (the country adopting the dollar) and the "anchor" country providing the currency.

Keywords: dollarization, dollarisation, monetary unions

JEL Classification: E42, E5, F33

Suggested Citation

Bogetic, Zeljko, The Calculus of Dollarisation (November 1, 2000). Central Banking, Vol. 11, No. 2, pp. 45-57, 2000. Available at SSRN:

Zeljko Bogetic (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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