Dollarisation

The neologism dollarisation relates to the description of the phenomenon by which a country gives up its national currency to adopt a foreign currency (but not inevitably the US Dollar). With regard to the use of the Euro out of the European Union, increasingly frequent thing, one can speak today about Euroïsation (or euroization).

This evolution is significant for the economy of the country which adopts this financial policy, since it loses any capacity to be played of the Planche to tickets in order to control its debt by the mechanisms of Inflation and Déflation; in particular, the State concerned loses the capacity to be acted, for its monetary policy, in terms of Dévaluation.

The stability and the force of parity of the dollar among the international currencies justify this choice.

In general, once a dollarized country, the phenomenon is presented like not easily reversible.

In 2002, the countries officially dollarized with respect to the US Dollar were:

Ecuador (2000)
El Salvador (2001)
Panama (1904)

The phenomenon of dollarisation is décrié by the movement Altermondialiste.

See too

Internal bonds

Monetary policy
, project of Euro applied to the American continent

Americanization (culture and manners)

External bonds

study: '' Débat on the dollarisation '' of the the IMF, 2000
Dollarization.org

Random links: