In recent years, five of the main economies in Latin America -Brazil, Chile, Mexico, Colombia and Peru- have adopted Inflation Targeting regimes. In the context of these converging monetary strategies, would the IT nations in the region be better off adopting a common currency? Would they be better off if they dollarize? Would a common currency be a better alternative than dollarization? The answers I give to these questions are yes, yes (except for Brazil) and maybe.
