A Dollarization/Free‐Banking Blueprint for Argentina
- 15 May 2003
- book chapter
- Published by Oxford University Press (OUP)
Abstract
This chapter analyses the impact of official dollarization on Argentina’s economy. It argues that replacing the peso issued by the central bank with dollar-denominated notes issued by offshore commercial banks would eliminate the perceived risk of peso depreciation, increase the supply of bank reserves, reduce banks’ demand for reserves, and encourage deposits into the banking system. This would lead to lower interest rates, and boost Argentina’s economy.Keywords
This publication has 3 references indexed in Scilit:
- Fewer Monies, Better MoniesAmerican Economic Review, 2001
- Some Reflections on Currency BoardsPublished by Springer Nature ,1999
- Experience of Free BankingPublished by Taylor & Francis ,1992