Cuba: From "Dollarization" to "Euroization" or "Peso Reconsolidation"?

Since its "depenalization" in 1993, the U.S. dollar has become possibly a more significant component of Cuba's money supply than the old peso. What are the alternatives? The euro seems inappropriate, given the inevitability of eventual normalization of relations with the United States...

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Bibliographic Details
Published in:Latin American politics and society 2002-07, Vol.44 (2), p.99-123
Main Authors: Ritter, Archibald R. M., Rowe, Nicholas
Format: Article
Language:English
Subjects:
Case studies
Cuba
Currencies
Dollar
Dollar demand
Dollarization
Economic Structure
Economic Systems
Economics
Exchange Rate
Exchange rates
Foreign exchange
Foreign exchange rates
Imports
International economics
Monetary areas
Monetary Policy
Money
Political science
Sharing economy
Tourism
United States of America
Wages
World Economy
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Summary:Since its "depenalization" in 1993, the U.S. dollar has become possibly a more significant component of Cuba's money supply than the old peso. What are the alternatives? The euro seems inappropriate, given the inevitability of eventual normalization of relations with the United States. More advantageous would be to restore the Cuban peso, though this would involve unifying the bifurcated economic structure and the dual monetary and exchange rate systems. The Cuban government has yet to announce its plans. This study argues that an appropriate mix of exchange rate, monetary, fiscal, and income or wage and salary policies should support a rehabilitation of the Cuban peso.
ISSN:1531-426X
1548-2456
DOI:10.1111/j.1548-2456.2002.tb00207.x