Crisis and Dollarization in Ecuador Stability, Growth, and Social Equity
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9780821348376
ISBN:082134837X
Publisher: World Bank Publications Summary: Early in 2000, Ecuador, confronted with a serious economic and governance crises, adopted the U.S. dollar as its national currency. The economic situation was dire with high inflation, government intervention in the banking system including freezing of deposits to prevent further flight from the country, and large fiscal deficits. Politically, then President Mahaud was being challenged by a congressional lack of supp [read more]- 30-Day No-Hassle Returns
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9780821348376
ISBN:
082134837X
Publisher: World Bank Publications
Early in 2000, Ecuador, confronted with a serious economic and governance crises, adopted the U.S. dollar as its national currency. The economic situation was dire with high inflation, government intervention in the banking system including freezing of deposits to prevent further flight from the country, and large fiscal deficits. Politically, then President Mahaud was being challenged by a congressional lack of support for measures to stabilize the economic situation, a radicalized indigenous movement, and a restive armed forces. In this environment, and as a policy of last resort, the government decided to adopt the U.S. dollar as its currency. This book thoroughly examines the conditions in which this decision was made. It looks historically at EcuadorA's economic and social structure and assesses the impact felt as a result of the decision.
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