Dollarization in Ecuador, a straitjacket that no candidate dares to question

Each election campaign resurrects the debate on whether the monetary scheme in force since 2000 is a straitjacket in times of tightness or a successful brake on government excesses.

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 . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?