Lorenzo L. Pérez. International Monetary Fund

[1] The author would like to thank Marcelo Figuerola and Andrew Tweedie for useful comments, and José Alonso, Jorge Pérez-López, and Joaquín Pujol for providing useful references. The views expressed here are those of the author and in no way represent the official views of the International Monetary Fund. Back to Text

[2] Calvo and Végh (June 1992). Back to Text

[3] This section draws upon Carmelo Mesa-Lago (January 1994), José Alonso (May 1994), as well as on materials provided by José Alonso and Jorge Pérez-López. Back to Text

[4] Resolution No.153/93 of the Banco Nacional de Cuba of June1, 1993. Back to Text

[5] C. Mesa-Lago, op. cit., Table2. Back to Text

[6] See José Alonso, op. cit. Back to Text

[7] This section draws on Calvo and Végh (June 1992) and in the other papers published in the June 1992 issue of the Revista de Análisis Económico, as well as on Brand (1993). Back to Text

[8] See Ramírez-Rojas (1985), El-Erian (1988), Rojas-Suárez (1992), and Clements and Schwartz (1993). Back to Text

[9] See Savastano (1992) pp. 31-39 for a comparative discussion of the currency substitution experience of these four countries. Back to Text

[10] As acknowledged by Savastano, this is not a comprehensive measure of currency substitution because it does not take into account foreign bills in circulation in the country or foreign exchange deposits of residents held abroad. Back to Text

[11] See Brand (1993), Chapter VI. Back to Text

[12] Sahay and Végh (1994). Back to Text

[13] This section draws on Calvo and Végh (1992), Brand (1994), and notes of Marcelo Figuerola from an in-house seminar at the Western Hemisphere Department of the IMF. Back to Text

[14] See Savastano (1992) for an analysis of how dollarization affects the governments' proceeds from the inflation tax