Borjas, George J; Fischer, Eric O'N - In: Journal of Money, Credit and Banking 33 (2001) 2, pp. 626-47
This paper examines how dollarization affects wages and employment in the Mexican labor market. Dollarization is modeled as a fixed real exchange rate and also as a potentially increased inflow of capital from abroad. The effects of dollarization depend upon whether adopting a fixed exchange...