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Essay text:
The views expressed herein are those of the authors and not necessarily those of the Great Lakes Institute of Management.
© 2004 by Sundara B Reddy. All rights reserved. Short sections of text, not to exceed
two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source.
Want Dollarization? No! No!
Sundara B Reddy
GLIM Working Paper
July 2004
JEL No. E42, F41, F42
ABSTRACT
This paper discusses major analytical aspects of dollarization and their practical implications. We develop a simple model to stress that dollarization implies the loss of independent monetary policy, yet the significance of such losses can only be evaluated in conjunction with assumptions about the policymaking process...
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