RIO DE JANEIRO, BRAZIL - Ecuador has a love-hate relationship with its currency, the dollar. On the one hand, dollarization has made it possible to control inflation (in 1999, just before the demise of the sucre, it reached 100% per year) and has been a dike against any adventure that breaks with the scripts of economic orthodoxy.
On the other hand, the country has lost a fundamental tool: it cannot issue banknotes or devalue. When the deficit soars, there is no alternative but to cut spending or go into debt. Ecuador is today a country rescued by the IMF. Every . . .