By Andres Solimano
Early in 2000, Ecuador, faced with a significant financial and governance crises, followed the U.S. buck as its nationwide foreign money. the industrial scenario used to be dire with excessive inflation, govt intervention within the banking process together with freezing of deposits to avoid additional flight from the rustic, and massive economic deficits. Politically, then President Mahaud was once being challenged through a congressional loss of help for measures to stabilize the commercial scenario, a radicalized indigenous circulation, and a restive defense force. during this atmosphere, and as a coverage of final hotel, the govt made up our minds to undertake the U.S. greenback as its currency.
This publication completely examines the stipulations within which this determination used to be made. It appears to be like traditionally at Ecuador's fiscal and social constitution and assesses the effect felt end result of the choice.