Exchange rate, dollarization and competitiveness

Vol. 11 No. 3 (1991)

Jul-Sep / 1991
Published July 1, 1991
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Salama, Pierre. 1991. “Exchange Rate, Dollarization and Competitiveness”. Brazilian Journal of Political Economy 11 (3):426-41.

Exchange rate, dollarization and competitiveness

Pierre Salama
Université de Paris Nord (Paris 13), Paris, França.
Brazilian Journal of Political Economy, Vol. 11 No. 3 (1991), Jul-Sep / 1991, Pages 426-441


Differently from previous situations, inflation in Brazil follows a very difficult
equilibrium: it remains very high, but do not explode in a hyperinflation. This process leads
to faint output and persistent inflation-based distortions. The author suggests a Koreaninspired
solution, where the State has an active role in promoting industries and exports.
An important instrument is the exchange rate.

JEL Classification: E31; L52; F31.

Keywords: Exchange rate dollarization economic growth inflation