Chronic dollarization: Argentina and Brazil

Vol. 11 No. 1 (1991)

Jan-Mar / 1991
Published January 1, 1991
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bresser-Pereira, Luiz Carlos, and Aldo Ferrer. 1991. “Chronic Dollarization: Argentina and Brazil”. Brazilian Journal of Political Economy 11 (1):3-14.

Chronic dollarization: Argentina and Brazil

Luiz Carlos Bresser-Pereira
Fundação Getúlio Vargas – FGV, São Paulo/SP, Brasil.
Aldo Ferrer
Universidade de Buenos Aires, - UBA, Buenos Aires, Argentina.
Brazilian Journal of Political Economy, Vol. 11 No. 1 (1991), Jan-Mar / 1991, Pages 3-14


Dollarization is usually an acute monetary phenomenon. It accompanies shortlived
inflationary processes. In Latin America, it is usual to hear of a threat of dollarization,
but effective dollarization only takes place with hyperinflation. An exception is Argentina,
where there is a historically new phenomenon: a chronic, long-lived dollarization. If chronic
(inertial) inflation is particularly difficult to control, chronic dollarization is still more difficult.

JEL Classification: F31; E31.

Keywords: Dollarization inflation stabilization