Question
Ecuador's currency has been dollarized (i.e. they're using another country's currency as their official currency - in this case, the US dollar) since March 2000.
Ecuador's currency has been "dollarized" (i.e. they're using another country's
currency as their official currency - in this case, the US dollar) since March 2000.
a. How does Ecuador get "money" now?
b. What happens if consumers/businesses in Ecuador start to carry a large CA deficit (e.g.
due to trade)?
i. Prices
ii. Exports/Imports
iii. Investment (esp. FDI)
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
