NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Dollarization and Economic Performance: An Empirical Investigation

Sebastian Edwards

NBER Working Paper No. 8274
Issued in May 2001
NBER Program(s):   IFM   ITI

In this paper I investigate the historical record of countries that have lived under a 'dollarized' monetary system. As it turns out, this is a very small group of counties, most of which have operated under very special circumstances, and for which there are very limited data. The results reported in this paper suggests that, when compared to other countries, the dollarized nations have: (a) have had significantly lower inflation; (b) grown at a significantly lower rate; (c) have had a similar fiscal record; (d) have not been spared from major current account reversals. Additionally, my analysis of Panama's case suggests that external shocks result in greater costs - in terms of lower investment and growth - in dollarized than in non-dollarized countries.

download in pdf format
   (147 K)

email paper

This paper is available as PDF (147 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Edwards, Sebastian and I. Igal Magendzo. "Dollarization And Economic Performance: What Do We Really Know?," International Journal of Finance and Economics, 2003, v8(4,Oct), 351-363.

Users who downloaded this paper also downloaded these:
Edwards and Magendzo w9820 Strict Dollarization and Economic Performance: An Empirical Investigation
Edwards and Magendzo w8671 Dollarization, Inflation and Growth
Chang and Velasco w8838 Dollarization: Analytical Issues
Klein w8879 Dollarization and Trade
Edwards and Magendzo w9514 A Currency of One's Own? An Empirical Investigation on Dollarization and Independent Currency Unions
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us