Costs and Benefits of Unilateral Monetary Unions
Montenegrin Economic Papers No. 1
12 Pages Posted: 2 May 2011
Date Written: April 1, 2002
Recent unilateral dollarizations in Ecuador and El Salvador (that adopted the US dollar) and Montenegro (that adopted the euro) showed that unilaeral monetary unions can be implemented and sustained even under harsh economic conditions. The paper reviewes recent experience with such monetary-exchange arrangements and consider associated costs and benefits from the viewpoints of the country adopting the foreign currency and the "anchor" country providing it.
Keywords: dollarization, monetary unions, Latin America, Montenegro
JEL Classification: E42, E63, F33
Suggested Citation: Suggested Citation