Eurizacija kao instrument monetarne politike Srbije?

Abstract

The 1990s were characterized by two important yet mutually connected phenomena: the introduction of the euro as a national currency in the EU member countries, and recommendations for the introduction of dollarization as an instrument of attaining macroeconomic stability. Full dollarization (eurozation) is a relatively rare phenomenon. Yet in recent years it has attracted a lot of attention, which can be proved by an increasing number of studies dealing with this problem, as well as an increasing number of countries taking this course of action. This paper deals with the advantages and the disadvantages of dollarization, not only from the theoretical aspect but also on the basis of experience of other dollarized countries. The paper mostly deals with the analysis of the adequacy of dollarization (eurozation) as a monetary regime of Serbia. The unequivocal conclusion is that dollarization (eurozation) is not a monetary policy instrument that can be recommended to Serbia, the most relevant reasons for this being: the loss of capital surplus, the loss of some foreign exchange reserves, the danger of foreign exchange outflow through the balance of payment current account deficit, likely opposition from the EU, etc.