Is dollarisation the answer?

[Karl]

Is dollarisation the answer?

Published: Sunday | March 15, 2009


Wayne Chen, Contributor

Chen
The recent rapid slide in the Jamaican dollar and hike in interest rates have heightened fears of a future of economic instability and the global financial meltdown has only served to turn fear into despondency.
Back in 1995, Jamaica was faced with low growth, high inflation, high interest rates and a sliding dollar. Seeking to be proactive in the face of a looming crisis, the Private Sector Organistion of Jamaica commissioned Alternative Monetary Regimes For Jamaica by Steve H. Hanke and Kurt Schuler.


They proposed three options to stabilise Jamaica's economy: full dollarisation, joining the Eastern Caribbean Central Bank, or establishing a currency board.
Given what has happened to our economy since 1995, miasmic growth, a financial sector crisis, and regular bouts of instability, I believe that Jamaica needs seriously to consider the options proposed, but personally I am in favour of full dollarisation.

http://www.jamaicagleaner.com/gleane...us/focus6.html

[Willi]

Run from the dollar. It is living on borrowed time.

Try the Euro or better the Candian dollar.