ENGLISH

Crisis and Dollarization in Ecuador: Stability, Growth, and Social Equity

By Andres Solimano , Paul Ely Beckerman

Book information

Publisher
World Bank
Year
2002
ISBN
082134837X, 9780821348376
Google Books ID
ZNy2AAAAIAAJ
Open Library ID
OL15577768M
Language
english
Format
PDF
Filesize
808 kB (827062 bytes)
Series
Directions in development
Pages
228\228
Orientation
yes
Scanned
no
Time added
2012-02-04 16:00:00

Description

Early in 2000, Ecuador, confronted with a serious economic and governance crises, adopted the U.S. dollar as its national currency. The economic situation was dire with high inflation, government intervention in the banking system including freezing of deposits to prevent further flight from the country, and large fiscal deficits. Politically, then President Mahaud was being challenged by a congressional lack of support for measures to stabilize the economic situation, a radicalized indigenous movement, and a restive armed forces. In this environment, and as a policy of last resort, the government decided to adopt the U.S. dollar as its currency. This book thoroughly examines the conditions in which this decision was made. It looks historically at Ecuador's economic and social structure and assesses the impact felt as a result of the decision.

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