Document Type

Student Research Paper

Date

Spring 2018

Academic Department

Business

Faculty Advisor(s)

Dr. Hossein Varamini

Abstract

This paper seeks to compare and contrast the effects of official dollarization on three broad macroeconomic variables: interest rates, inflation and GDP growth, in Ecuador and El Salvador. The paper will facilitate a better understanding of how the same alternative to monetary policy was expected to change the macroeconomic situation in two different countries with distinct pre-dollarization circumstances by analyzing the context in which the decision to dollarize was made, what happened before and after each country implemented the USD as official currency, and evaluating dollarization’s macroeconomic costs and benefits so as to provide a prescription for countries considering dollarization.

Notes

Senior thesis.

Share

COinS