World Economics - Insight , Analysis and Data

World Economics - Insight , Analysis and Data
Dollarisation in Theory and Practice
John C. B. Cooper
World Economics, December 2004

Dollarisation involves the replacement of a soft domestic currency with a hard foreign alternative. This paper explains the different forms that dollarisation can take, its consequences for an economy, and concludes by exploring the experience of Panama, a country dollarised since 1904.
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