Joseph M. Perry, Louis A. Woods and Jeffrey W. Steagall, University of North Florida, Jacksonville, Florida

[1] For a typical statement, see William A. McEachern, Economics: A Contemporary Introduction, third edition (Cincinnati: South-Western Publishing Co., 1994), pp. 282-290.

[2] Robert C. Puth, American Economic History, third edition (Fort Worth: The Dryden Press, 1993), pp. 87-90; Paul Studenski and Herman E. Krooss, Financial History of the United States, second edition (New York: McGraw-Hill Book Company, 1963), pp. 12-21. Back to Text

[3] Edwin Walter Kemmerer, Money (New York: The Macmillan Company, 1935), p. 83. Back to Text

[4] Gary M. Walton and Hugh Rockoff, History of the American Economy, sixth edition (San Diego: Harcourt Brace Jovanovich, 1990), p. 239. See also Studenski and Krooss, Financial History of the United States, p. 10. Back to Text

[5] Kemmerer, Money, pp. 88-91. Back to Text

[6] Kemmerer, Money, p. 96. Back to Text

[7] See C. L. Ramírez-Rojas, "Currency Substitution in Argentina, Mexico, and Uruguay," International Monetary Fund Staff Papers 32:4 (December, 1985), 629, for the cited definition. Also consider Carlos Rodríguez, "Money and Credit Under Currency Substitution," International Monetary Fund Staff Papers 40:2 (June, 1993), 414-426. Back to Text

[8] Kemmerer, Money, pp. 328-333, 335-336, and passim; Puth, American Economic History, pp. 230-233. During two wartime periods, 1814-1817 and 1862-1878, the country was actually on a fiduciary paper money standard. Back to Text

[9] Kemmerer, Money, pp. 336-340. See also Dewey, Financial History of the United States (New York: Longmans, Green and Co., 1920), pp. 210-212. Back to Text

[10] Kemmerer, Money, p. 343. Back to Text

[11] Kemmerer, Money, pp. 339-357. Back to Text

[12] John M. Willem, Jr., The United States Trade Dollar (New York: Privately Printed, 1959), pp. 25-28. Back to Text

[13] Willem, The United States Trade Dollar, pp. 25-53, 135-166. Back to Text

[14] Milton Friedman, "Bimetallism Revisited," The Journal of Economic Perspectives 4:4 (Fall, 1990), 85-104; and "The Crime of 1873," Journal of Political Economy 98:6 (December, 1990), 1159-1194. Back to Text

[15] Scott D. Tollefson, "Economy," in Panama: A Country Study, fourth edition (Washington, D. C.: U. S. Government Printing Office, 1989), p. 133. Back to Text

[16] Brian W. Blouet and Olwyn M. Blouet, Latin America and the Caribbean: A Systematic and Regional Survey, second edition (New York: John Wiley and Sons, Inc., 1993), pp. 280-281; Jan Knippers Black and Edmundo Flores, "Historical Setting," in Panama: A Country Study, fourth edition (Washington, D.C.: U.S. Government Printing Office, 1989), pp. 20-32.

[17] Kemmerer, Money, p. 96. Back to Text

[18] Central Bank of Belize, Eleventh Annual Report and Accounts: 1992 (Belize City: Central Bank of Belize, 1993). Back to Text

[19] Porter's observations are presented in his unpublished paper, "Estimates of Foreign Holdings of Currency -- An Approach Based on Relative Cross-Country Seasonal Variations," prepared for the Board of Governors of the Federal Reserve System in September, 1993. See also his article, "Foreign Holdings of US Currency," International Economic Insights, IV:6 (November/December, 1993), 5; and Richard S. Porter and Amanda S. Bayer, "A Monetary Perspective on Underground Economic Activity in the United States," Federal Reserve Bulletin, 70:3 (March, 1984), 177-190. Back to Text

[20] Edgar L. Feige, "The Myth of the Cashless Society," International Economic Insights, IV:6 (November/December, 1993), 2-4. See also Robert B. Avery, Gregory E. Ellenhausen, Arthur B. Kennickell, and Paul A. Spindt, "Change in the Use of Transactions Accounts and Cash from 1984 to 1986," Federal Reserve Bulletin, 73:3 (March, 1987), 179-196.

[21] See Lorenzo L. Pérez, "The Implications of Currency Substitution Experiences in Latin America and in Europe for Cuba," paper presented at the Fourth Annual Meeting of the Association for the Study of the Cuban Economy (ASCE), Miami, Florida, August 11-13, 1994, pp. 4-6.

[22] Ibid. Back to Text

[23] Pérez, "Implications . . .", p. 6. Back to Text

[24] Note that the Castro administration appeared to amend its earlier position in May, 1994, when it proposed monetary reform and reported that it would increase its control over freely convertible currencies in the country. See Pérez, "Implications . . .," p. 4. Back to Text

[25] Jorge A. Sanguinetty and Juan Luis Moreno Villalaz, "Monetary Dualism as an Instrument Towards a Market Economy: The Cuban Case," a paper presented at the annual meeting of the American Economic Association, Boston, January 3-5, 1994. Moreno's earlier paper, "Una política o un sistema monetario óptimo," Cuba in Transition, Volume 2 (Miami: Association for the Study of the Cuban Economy, 1992), pp. 221-240, argued the adoption of the Panamanian system, with the dollar as the official currency of Cuba. Moreno argues that the Panamanian system, with an endogenous money supply, is "optimal in terms of stability, growth, adjustment to external shocks, and in implementing a market economy." Back to Text

[26] Tollefson, "The Economy," p. 133. Back to Text

[27] Pérez, op. cit., p. 16. Back to Text