dollarization. Critics argue that dollarizing would force Argentina to import the monetary policy of the Federal Reserve, regardless …

, and evaluates some of the predictions of the theory on the costs and benefits of full dollarization. The main conclusions … drawn from the case of Panama are that on one hand, dollarization does not guarantee fiscal discipline, the elimination of … currency risk does not preclude default risk or the high volatility of sovereign spreads, and that dollarization may increase …