Acceso usuarios
Rodrigo Vergara, Juan Andrés Fontaine Talavera
This article analyzes the costs and benefits of the dollarization of the Chilean economy. The conclusion is that at the present time the costs are more than the benefits. One of the basic arguments is that the adjustment process of a dollarized economy to different shocks can be long and costly.
This, however, does not imply that if the conditions necessary to a succesful dollarization are present in the future, the above conclusion could change.
Indeed, the globalization of the economy in its different areas (trade, capital flows, and labor mobility) is becoming so deep, that the full integration with the rest of the world seems inevitable. In such a world the dollarization (or more generally the use of a common currency) makes as much sense as it does the use of a common currency within the national territory.
