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

Bogetic, Zeljko, Costs and Benefits of Unilateral Monetary Unions (April 1, 2002). Montenegrin Economic Papers No. 1. Available at SSRN:

Zeljko Bogetic (Contact Author)

World Bank ( email )

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

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