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Economic Development of Central America Econ. 4200 - Spring 2004 – Dr. Taylor - page 69 / 153

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On December 28, 2003, in a runoff election, the centrist mayor of Guatemala City, Oscar Berger, won the presidency with 54% of the vote. Berger defeated the former dictator, Efraín Ríos Montt, who ran a military government from 1982-1983.

El Salvador Learns to Love the Greenback

The Economist, Sept. 26, 2002

What is “dollarisation”?

Do the authors of the article think that

dollarisation makes sense for El Salvador? Why?

Have there been any benefits to dollarisation realized so far?

Has there been any negative consequences experienced by dollarisation? Does the article suggest that this will pose a serious problem?

If this monetary transition proves successful, what does the article suggest may happen next?

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