Ecuador and El Salvador have recently adopted the U.S. dollar as legal tender, replacing their own national currencies.1 This same move has received serious attention in policy debates in both Argentina and Mexico. Abandoning the national currency is a decision with far-reaching economic and political implications that are not well understood. In response to this phenomenon, a growing literatur...

The aim of the study is to investigate determinants dollarization in Turkey. For this purpose, 2013M1-2021M2 period was analyzed with monthly data using regression and causality tests. As a result analysis, positive relationship found between international reserves returns financial investment instruments dollarization. On other hand, negative domestic foreign interest rates difference exchange...

This book is based on a conference held at Kalamazoo College Michigan. In 11–12 May 2001, on the lessons of the European Monetary Union (EMU) for the Americas. Much of the economic analysis of moving to EMU has been undertaken within the context of the Optimal Currency Area (OCA) paradigm, based on Mundell’s (1961) seminal contribution. In that view money is viewed as having developed from a pr...

T he investigation of exchange rate pass-through is an important issue in international finance. The relationship between exchange rate pass-through and exchange rate arrangements such as the dollarization regime has been examined in recent decades. For this purpose, the main objective of this study is to investigate the effect of exchange rate pass-through on the domestic inflation in selecte...