Comment on THE BENEFITS OF DOLLARIZATION WHEN STABILIZATION POLICY LACKS CREDIBILITY AND FINANCIAL MARKETS ARE IMPERFECT.

The article presents several comments to Enrique G. Mendoza's paper "The Benefits of Dollarization When Stabilization Policy Lacks Credibility and Financial Markets are Imperfect," which was published in the May 2001 issue of this journal. Several topics are discussed, including the dollarization versus stabilization of inflation, the public welfare gains of economic stabilization in steady state versus the public welfare gains including the transition, and the role of uncertainty in the evaluation of the benefits of stabilization.