Print page

Monetary Integration and Dollarization

No Panacea Edited by Matías Vernengo, Full Professor, Bucknell University, US
This book deals with the economic consequences of monetary integration, which has long been dominated by the Optimal Currency Area (OCA) paradigm. In this model, money is perceived as having developed from a private sector cost minimization process to facilitate transactions. Not surprisingly, the book argues, the main advantage of monetary integration in the OCA context is the reduction of transaction costs, yet the validity of OCA to analyze processes of monetary integration seems to be limited at best.
Extent: 320 pp
Hardback Price: $156.00 Web: $140.40
Publication Date: 2006
ISBN: 978 1 84376 896 8
Availability: In Stock
$0.00

Buy the E-Book @ paperback price

Join our mailing list

  • Economics and Finance
  • Financial Economics and Regulation
  • International Economics
This book deals with the economic consequences of monetary integration, which has long been dominated by the Optimal Currency Area (OCA) paradigm. In this model, money is perceived as having developed from a private sector cost minimization process to facilitate transactions. Not surprisingly, the book argues, the main advantage of monetary integration in the OCA context is the reduction of transaction costs, yet the validity of OCA to analyze processes of monetary integration seems to be limited at best.

The contributors in this volume try to go beyond the OCA model and understand the political economy of monetary integration by comparing the European Monetary Union with the dollarization (formal and informal) process in Latin America. The contributors, many of whom are leading lights, reflect the disagreements and the changing views on the proper monetary arrangements in a globalized world and suggest that monetary integration and dollarization are not the solution for the great majority of countries around the world.

Monetary Integration and Dollarization brings together mainstream and heterodox views of monetary integration and uses the European and North American experiences as a guide for the discussion of dollarization in developing countries. It will appeal to scholars, researchers and policy makers in the fields of financial and international economics.
‘This book brings together an impressive and diverse group of authors to discuss its central theme: whether or not the dollarized international monetary system is sustainable in the context of the global economy it helped create. In addition to its uniquely well-rounded and comprehensive coverage of the issues, this lively and highly readable volume provides an accurate assessment of the lack of consensus in the current debate. A “must read” for anyone interested in currency crises and the increasing vulnerability of the dollar.’
– Jane D’Arista, Director of Progams, Financial Markets Center, US
Contributors: P. Arestis, R.G. Bodkin, L.C. Bresser-Pereira, A.F. Câmara Neto, P. Davidson, B. Eichengreen, S. Griffith-Jones, W.C. Gruben, K.P. Jameson, J. Koo, C. Medeiros, A. Parguez, J.-F. Ponsot, S. Pozo, M. Sawyer, M. Seccareccia, F. Serrano, R. Studart, M. Vernengo
Contents:

Foreword
Luiz Carlos Bresser-Pereira

Monetary Arrangements in a Globalizing World: An Introduction
Matías Vernengo

PART I: EUROPEAN MONETARY UNION
1. Reflections on the Experience of the Euro: Lessons for the Americas
Philip Arestis and Malcolm Sawyer

2. European Experiences of Currency Boards: Estonia, Lithuania, Bulgaria and Bosnia and Herzegovina
Jean-François Ponsot

3. The Lessons of the European Monetary Union
Alain Parguez

PART II: DOLLARIZATION IN NORTH AMERICA?
4. Does NAFTA Move North America Towards a Common Currency Area?
William C. Gruben and Jahyeong Koo

5. Dollarization and Illegal Immigration: Implications for NAFTA
Susan Pozo

6. Is the Canadian Dollar Destined to Disappear? A Critical Perspective
Mario Seccareccia

7. Float, Fix or Joint? The Options for Canadian Foreign Exchange Policy
Ronald G. Bodkin

PART III: EMERGING MARKETS AND THE FINANCIAL ARCHITECTURE
8. Can Emerging Markets Float? Should They Inflation Target?
Barry Eichengreen

9. Integrating Uneven Partners: The Destabilizing Effects of Financial Liberalization and Internationalization of Latin American Economics
Rogério Studart

10. Exchange Rate Regimes and the Need for Elements for a New International Financial Architecture
Stephany Griffith-Jones

11. Capital Flows to Emerging Markets under the Flexible Dollar Standard: A Critical View Based on the Brazilian Experience
Carlos Medeiros and Franklin Serrano

PART IV: FINAL REFLECTIONS
12. From Capital Controls to Dollarization: American Hegemony and the US Dollar
Matías Vernengo

13. A Framework for Analysing Dollarization
Paul Davidson

14. Dollarization in Latin America: 2004 and Beyond
Kenneth P. Jameson

15. Monetary Integration and Dollarization: What Are the Lessons?
Alcino F. Câmara Neto and Matías Vernengo

Index