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When Carlos Menem was first elected President of Argentina in 1989, the economy was in shambles. Since then, his governments have delivered an almost unbelievable set of free-market reforms. In con...
My bottom line on the issue of Latin American dollarization is that (1) the U.S. government should not promote a general dollarization of Latin America, and (2) our government should accommodate the...
The Superiority of Currency Competition Dollarization is gaining support in Latin America as the definitive way to leave behind its inflationary past. By dollarization I mean the official demise of...
Dollarization is a portfolio shift away from domestic currency to foreign currency, to fulfill the main functions of money—store of value, unit of account, and medium of exchange. It is typically a ...
A nation that seeks to fix the value of its currency relative to that of some other nation’s currency can do so in at least three different ways: it can assign responsibility to the central bank for...
Panama’s unique macroeconomic and monetary arrangements embody, as no other country, freedom of choice in the capital markets. This article discusses and explains how Panama’s macroeconomic system ...
The unfamiliar, however simple, is often hard to understand because it requires a slightly different way of thinking. Official dollarization is a case in point. It is hard to conceive of a simpler m...
Modern currency boards are not necessarily precluded from financing government spending and may feature only partial foreign reserve backing. The potential dangers are highlighted by the Cook Islan...

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