Structural changes in Ecuador competitivity after dollarization
Keywords:
Monetary contraction, loss of competitiveness, struc-tural breakAbstract
Many studies, both empirical and theoretical, have established the
negative effects that a contractive monetary policy can inflict on
market competitiveness and how these effects can become permanent.
The following article seeks evidence of a permanent change in Ecuadorian competitiveness with its commercial partners Colombia and Peru; between the decade of the 90s, when there was a discretional monetary policy, and the years following the economy`s dollarization.
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