Foreword – Understanding Dollarization


The authors of this book, Emre Ozsoz and Erick W. Rengifo, offer a stimulating analysis of dollarization in emerging and developing economies. They discuss major and historical developments regarding partial dollarization and cover the experience of many individual countries in several regions including Latin America, Central and Eastern Europe, Asia and Sub-Saharan Africa. They provide an analysis of motives for dollarization and also discuss pros and cons of dollarization. In addition, they cover the literature on the impact of dollarization on banking systems and financial development and evaluate recent policy interventions in dollarized economies.

It is well known that dollarization is directly related to many major macroeconomic and finance issues as well as key institutional developments in emerging and developing economies. Hence, the book is an excellent reference for scholars specializing in these economies. The book’s captivating analysis and findings also offer practical implications for policymakers, financial participants and other key stakeholders.

The book is an excellent reference for students as well. It covers many critical issues on dollarization in an intuitive way and offers useful case studies and individual country experiences. Critical issues and empirical analysis are well articulated. The book can be adopted in upper-level undergraduate courses or master’s courses in economics and finance. Those teaching MBA courses may find the book quite useful due to its case study and individual country experience coverage. The book may also be adopted for international business courses.

Whether you are a university student, research fellow, professor or policymaker this book provides interesting and useful information about dollarization in many emerging and developing economies. Any person interested in these economies should have this book on his or her desk.

The authors of “Understanding Dollarization” have done an excellent job and can be confident that their enthusiastic work will have many appreciative readers and motivate scholars to engage in further research. The book is timely and will have a significant impact on the field.

Ali M. Kutan

Department of Economics and Finance

Southern Illinois University Edwardsville

Editor, Emerging Markets Finance and Trade

Co-Editor, Economic Systems

Editor, Borsa Istanbul Review