Dollarization in El Salvador and Ecuador: a model worth following?
Moran, Benjamin P.
Looney, Robert E.
Adame, Laura R.
MetadataShow full item record
This thesis explores de jure dollarization in El Salvador and Ecuador. De jure dollarization is the wholesale transition from using a country’s national currency to using another country’s currency as its own legal tender. This thesis looks at the histories of El Salvador and Ecuador in order to set the stage for the conversion to the U.S. dollar. It then looks at select macroeconomic indicators in both countries to determine if dollarization has been a beneficial policy decision for each country. The data suggests that dollarization has been a prudent choice for El Salvador and Ecuador. While the macroeconomic success of both countries cannot be wholly attributed to dollarization, it has enabled both countries to have low, stable inflation rates and interest rates that have contributed to positive macroeconomic outcomes. Since this thesis approaches dollarization from a macroeconomic viewpoint, additional research should focus on how dollarization has affected various socioeconomic classes in these societies on a more microeconomic level.
Approved for public release; distribution is unlimited
Showing items related by title, author, creator and subject.
Gherardy, Juan G. (Monterey, California: Naval Postgraduate School, 2016-03);Ecuador’s role in the cocaine trade has historically differed from its drug-trafficking neighbors. This Andean country traditionally serves as a transshipment hub for illegal narcotics, precursor chemicals, and a place to ...
Riedel, Curtis B (Monterey, California. Naval Postgraduate School, 1997-03);From 1980 to 1992, the United States spent over 6 billion dollars to combat insurgency and bolster democracy in El Salvador, a nation of only 5.3 million people. In fact, El Salvador was the site of the United States' most ...
Camacho, Carlos Eduardo Paladines. (Monterey, California. Naval Postgraduate School, 2003-03);Civil Military Operations (CMO) has often been blamed for the politicization of the armed forces and a loss of civilian control. This thesis confronts this traditional approach and argues that CMO need not lead to these ...