Abstract
This paper considers ten articles regarding dollarization. It explores the effects of official and unofficial dollarization. The author discusses problems with the de facto dollarization of economies. The paper explains three types of dollarization. The author concludes with a discussion on the political dimensions of dollarization, and other issues.

From the Paper
"Dollarization occurs when a country either formally or informally uses another country's currency rather than its domestic currency as the primary medium of exchange. Informally individual businesses or citizens ..."

Tags:dollarization, literature review

Abstract
This papers deals with the effect of dollarization on the South American country of Ecuador. The author looks at issues such as economics, politics and society and how dollarization may impact these.

From the Paper
"Ecuador, the "Republic of the Equator" was one of the three countries that emerged from Simon Bolivar's Gran Colombia in 1830. It is located in western South America, bordering the Pacific Ocean at the Equator, between Colombia and Peru. It is a very small country, measuring out to be slightly smaller than the State of Nevada. Being as small as it is, Ecuador has the economic and political troubles of a giant."

Tags:south, america

Abstract
Over the past several years, the country of Ecuador has had its economic problems burgeon into a crisis. This has resulted in the devaluation of its currency, the closing of many schools, a crisis in confidence by both Ecuadorans and people in many other countries, and substantial political upheaval as the government has repeatedly changed hands. The paper shows that the causes for the country's economic failure are complex and interlinked. It examines one of the most important causes, the country's exchange rate, as well as the relationship between the country's economic situation and the dollarization of the economy.

From the Paper
"In devaluing the currency, the government acknowledged that the International Monetary Fund did not entirely approve. The power that the IMF has over many developing nations is substantial and will be examined below. Ecuadoran leaders have struggled for years to remedy the financial problems of their country, but have been unable to make substantial progress in large measure because of the nation's dependent position in the world trade system."

Tags:International, Monetary, Fund, Latin, America

Abstract
This paper explains the concept of seigniorage and looks at its implications for nations such as Colombia, where inflation is more difficult to control and there is an alternate currency -- the US dollar-- available.

From the Paper
"Seigniorage consists of the net revenue which is received by the issuer of a currency merely through the process of issuance of the currency. The delta between the face value of the coin or note and the cost of producing that coin or note, then distributing it through the economy and ultimately retiring it from the economy constitutes Seigniorage. The concept works with inflation rates and currency demand to, in effect, provide an interest free loan to the issuer of the currency from the user. However, the concept has its limits. One important limit exists in those cases, such as that evident in Colombia, where an alternate currency is widely ..."

Tags:inflation, currency

Abstract
This paper identifies five persistent factors that have determined the historical trajectory in Ecuador's exchange-rate policy and threatened its long-term macroeconomic stability: (a) chronic inflation, (b) over-dependence on commodity exports, (c) excessive borrowing, (d) institutional weaknesses in the financial system, and (e) weak public administration. It assesses the merits of dollarization by discussing to what extent these problems have been mitigated or solved. The rest of the paper is organized as follows: Section 1 provides an historical overview of the important events surrounding Ecuador's exchange rate policy, beginning with the adoption and management of the floating rate in early 1990s, leading up to dollarization in the year 2000, and highlighting the state of affairs in the country since then; Section 2 describes the process by which Ecuador implemented dollarization; Section 3 provides an analysis of the pros and cons of dollarization in Ecuador; Section 4 discusses whether Ecuador really had any choice but to dollarize, given the option of adopting a currency board instead; and in Section 5, the writer provides some concluding comments.

From the Paper
"Ecuador is one of the 15 countries in the world today that uses the U.S. dollar as its official domestic currency and legal tender . The case of Ecuador's dollarization is unique for two reasons; first, this is by far the largest country to fully dollarize its economy, and second, the purpose of dollarization was not to reap the benefits of a regional or trade-based currency union, but to provide quick stabilization to a volatile macroeconomic environment. The Ecuadorian sucre experienced several different exchange rate systems on the road to dollarization, including a fixed exchange rate regime during the seventies, an unwieldy floating rate system in the late eighties and early nineties featuring four different exchange rates simultaneously in operation, a unified and managed floating rate mechanism subject to a crawling peg band for most of the nineties, and finally, a free float in 1999. During this period, Ecuador experienced a steady increase in the level of unofficial, spontaneous dollarization, to the extent that the economy was operating in a dual-currency environment. Full, official and formal dollarization was declared in January 2000, at a time when the country was suffering from the worst recession in its independent history, a severe banking crisis, and hyperinflation."

Tags:inflation, trade

Abstract
The country of Ecuador has, over the past several years, seen its economy reach crisis level, resulting in the devaluation of its currency, the closing of many schools, a crisis in confidence by both Ecuadorans and people in many other countries and substantial political upheaval as the government has repeatedly " and rapidly " changed hands. The causes for the country's economic failure are complex and interlinking. This paper examines one of the most important causes - the country's exchange rate and the relationship between the its economic situation and the dollarization of the economy (the extensive use of the U.S. dollar alongside or instead of the domestic currency).

From the Paper
"One possible solution to the country's economic problems (although this may only be a short-term one) is dollarization. In large measure because of the ways in which Ecuador's economy has been weakened through international banking policies (including those instituted by both the IMF and the World Bank), Ecuadorans have for several years sought refuge in the process of dollarization a move that was initially at least made out of desperation. The move to dollarization was made in part because of problems internal to Ecuador's economic situation and in part due to a domino effect common in Latin America in which problems in one country spill over to others. "

Tags:Latin, America, International, Monetary, Fund, IMF

Abstract
This paper briefly explains the concept of seigniorage and outlines the reasons why seigniorage is considered a valuable taxing tool by governments around the world. The paper focuses on Columbia and why Columbia is unable to capitalize fully on the benefits of seigniorage because of the U.S. dollar's impact on the economy in that country.

Table of Contents:
Seigniorage (And Inflation) Explained
Dollarization
Colombia and Seigniorage
Conclusion

From the Paper
"Another reason these factors have negatively impacted upon Colombia's ability to profit from Seigniorage is that the peso has not always been the preferred currency among consumers. Because of the difficulties in the Colombian government and economy, and the fact that many U.S. dollars are available as alternate currency, many consumers have favored the dollar over the peso. This has resulted in people utilizing the dollar as a first alternative and the peso as a second in many cases. At a minimum, it has resulted in consumers using dollars as a parallel alternate, thereby "cutting the profits" that the government would make if the peso were the only currency. In effect the Colombian government has lost its monopoly in creating currency."

Tags:peso, currency, policy, profits

Abstract
The paper presents a thorough examination of the causes of the weak U.S. dollar and a discussion of both the pros and cons of the current Bush dollar policy. The paper questions what the dollar policy of the Bush Administration should be. After understanding the effects of the dollar policy, the paper shows that the administration should promote a stable dollar through increased fiscal discipline. This would show the world that the U.S. is not pushing its debt problems on them, eliminating the uncertainty of currency markets. With a stable dollar policy, the U.S. could improve the domestic economy, while no longer economically alienating the rest of the world.

From the Paper
"Former presidents George Washington, Abraham Lincoln, and Andrew Jackson may not have had similar leadership strategies, but each were powerful figures of American history. Their contributions to the development of the United States helped it become the most powerful nation in the world, and today their involvement is acknowledged, as portraits of each grace a form of American currency. Their pictures symbolize American history and, more importantly, power. While the United States continues to hold a central role in global markets, its hegemony is increasingly threatened. The decline in value of the US dollar over the last three years may be symbolic of dwindling American dominance, thus the fall of the dollar is being closely examined. Many countries feel the US lives beyond its means. A weak US dollar helps boost US exports, in effect decreasing trade deficits by allowing the world to buy American debt. The current administration provides meaningless sound bites to the media, proclaiming publicly that it wants a strong currency while quietly allowing the dollar to decline. Other domestic policies seem to promote the idea that America is doing little to promote a strong dollar, such as an expanding defense budget and calls for social security reform. If the US continues to show such disregard for foreign opinion, the results may be devastating."

Tags:currency, deficit, dollar, economy, exchange, rates, trade

Abstract
The paper relates that in 2007, the Canadian dollar rose approximately 25%, to attain a rough parity with the American dollar for the first time in decades. This paper examines the causes and effects of this rising dollar for the Canadian economy. The thesis is argued that this increase in the value of the Canadian dollar damaged the manufacturing and foreign export trading sectors of the Canadian economy, as it eliminated a primary element of Canada's competitiveness, while strengthening the energy sector.

From the Paper
"In 2007 the Canadian dollar rose approximately 25%, to attain a rough parity with the American dollar for the first time in decades. The effects of the rising Canadian dollar have not been felt equally across the county. This essay will examine the effects of this rising dollar on local industry in two different provinces - Alberta and Ontario - and the roles of both provincial and federal governments in dealing with these unequal effects. The thesis will be argued that regardless of industry or province, this increase in the value of the Canadian dollar damaged the..."

Tags:canada, dollar, business

Abstract
This paper explores the U.S. dollar and the effects of its devaluation. The paper also argues the pros and cons of a weak dollar and examines measures the U.S. government and consumer can take to slow or prevent the the dollar's decline.

From the Paper
"Since the beginning of advanced civilization, trade and economy has revolved around currency. Currency provides a uniform medium for the exchange of goods and services, and facilitates economic activity. As world economies become more and more reliant upon each other, the difference in valuation of national currencies becomes increasingly important in projecting markets. For the purposes of this paper, I will explore why the United States dollar has fallen recently in the context of macroeconomics, and identify the advantages and disadvantages of a "strong" national currency."

Tags:currency, dollar, economics, global, inflation, international, macroeconomics, markets, weak