@techreport{NBERw9514,
 title = "A Currency of One's Own? An Empirical Investigation on Dollarization and Independent Currency Unions",
 author = "Sebastian Edwards and Igal Magendzo",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9514",
 year = "2003",
 month = "February",
 URL = "http://www.nber.org/papers/w9514",
 abstract = {In this paper we analyze whether  common currency' countries that is, dollarized and independent currency union countries have outperformed countries that have a currency of their own. The paper is empirical and estimates jointly the probability of being a common currency country and  outcome' equations for growth, volatility and inflation. We find that both type of common currency countries have lower inflation than countries with a domestic currency. Dollarized countries have lower growth and higher volatility than countries with a domestic currency. Currency unions, on the other hand, have higher growth and higher volatility than countries with a currency of their own.},
}