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: Suggested Citation