Introduction:

this article analyzes the process of dollarization in Hispanic America from different economic perspectives. Dollarization refers to the adoption of a foreign currency as legal tender and is linked to the loss of value of national currencies. The concept and the different types of dollarization will be established, paying special attention to the cases of official dollarization such as that of Ecuador and El Salvador and to the banking system of Panama that is characterized by its financial integration and the absence of a central bank.

Objective:

to analyze the effects on interest rates, inflation, trade balance and other macroeconomic variables in different countries of the region.

Materials and Methods:

primary sources are therefore used and economic data are interpreted based on the theories presented.

Results:

In the case of Ecuador, dollarization contributed to overcoming the 1999 financial crisis by providing the period of greatest monetary stability in its history.

Conclusions:

Keynesian economists or those who propose the intervention of central banks in the design of monetary policy pose another analysis of the process.

        · resumen en Español | Portugués     · texto en Español     · Español ( pdf )