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The dollarization of emergent economies
[La dollarisation des économies émergentes]

Author

Listed:
  • Jean-François Ponsot

    (LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5118] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Current discussions about dollarization/euroization are built on substitution models and cost/benefits analysis. This working paper aims to go beyond these explanations based on a functionalist definition of money. An institutionalist definition of money advocates analyzing de facto dollarization more broadly as a legitimacy crisis of the unit of account that damages monetary sovereignty and of whom authorities try to check in a kind o f institutional resistance. A macroeconomic definition of money involves questionning full and de jure dollarization consistency with both of principles guiding the monetary economy of production: (1) endogeneity of money; (2) merger between monetary space and production space. Implications that follow both for dollarized economies and foreign currency issuers encourages the restriction of dollarization arrangements to a limited number of specific cases.

Suggested Citation

  • Jean-François Ponsot, 2002. "The dollarization of emergent economies [La dollarisation des économies émergentes]," Working Papers hal-01526893, HAL.
    • Handle: RePEc:hal:wpaper:hal-01526893
    Note: View the original document on HAL open archive server: https://hal.science/hal-01526893
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    References listed on IDEAS

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