Una propuesta de recuperación económica en una economía de recesión:
un análisis de economía ecuatoriana y ciudades fronterizas.
Palabras clave:seigniorage, dollarization, free -trade zone ( FTZ), Mop-up liquidity,crowding-out.
Many critics of dollarization of Ecuadorian economy should also count the achievements dollarization policy has avail Ecuador. Economically, countries with balance of payment problems are mandated internationally to devalue their currency, devaluation of Ecuadorian Sucre would have been a disaster for Ecuador seeing that Ecuador as a country is not industrially developed rather it's operating a monotonic economy highly dependent on export of crude oil and pre-processed agro product. Secondly, seignior age which to Ecuador is a huge gain, since the country is not responsible for the cost of printing their official currency.Paradoxically, would have been an expenses if the government operates a Sucre economy. Although the present government has made tremendous changes and also measurable achievements Kudos to the government of Rafael Correa, there is still enormous economic challenges and Immense gap between the poor and the reach which next government need to tackle to alleviate the present economic hardship. Establishment of a free trade zone is a panacea to conquer challenges posed by Colombian Pesos to Ecuadorian economy. FTZ is a card changer to minimize brain drain from border provinces and rekindle commercial activities as well as generate enormous employment opportunity which will in turn increase government revenue , exterminate poverty and curb recession being experienced presently by the economy due to fiscal policies. Tax policy is economically lucrative in correcting economic anomalies but government should also take into consideration the ratio of unemployment to Employment which directly determines purchasing power and any attempted increment in taxation should be within a stipulated economic period in order to match economic growth with development.
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