Chapter

The Problem of Dollar Encroachment in Emerging Markets

Ronald I. McKinnon

in The Dollarization Debate

Published in print May 2003 | ISBN: 9780195155358
Published online November 2003 | e-ISBN: 9780199832989 | DOI: http://dx.doi.org/10.1093/0195155351.003.0011
The Problem of Dollar Encroachment in Emerging Markets

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This chapter examines the monetary and exchange rate policies of Canada, Latin America, and East Asia toward the dollar. The central role of the dollar in international finance has the potential to displace national currencies for domestic uses. Only Canada and a few other countries can safely act unilaterally against dollar encroachment. In other parts of the world where regional trade is important but a regional common currency is not politically feasible, establishing an efficient common monetary standard is more of a collective choice.

Keywords: Canada; Latin America; East Asia; dollar encroachment; currency; monetary policy

Chapter.  8554 words. 

Subjects: International Economics

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