Current Status of Ecuadorian Economy

[RICKI KOBERNIK]

Any concern regarding the move away from dollarization, the creation of electronic “currency”, the increase in public debt and the resemblance to the “Argentinian economic decline”?

[SUZAN HASKINS]

I don’t think Ecuador will move away from the dollar. The president has pretty well said as much. He might like to, but he can’t. And the digital currency… well, let’s see how that pans out.

[EI EXPERT – EDD STATON]

I’m by no means an economist but I see no resemblance to the economies of Ecuador and Argentina except that both nations are in South America. Ecuador’s struggles stem mainly from the unexpected decline in global oil prices. Belt tightening is happening as it must, because since we use the US dollar we can’t temporarily print ourselves out of harm’s way. I personally think that’s a good thing.

[RICKI KOBERNIK]

Opinions and articles from the Cato Institute, Motley Fool and others indicate a somewhat more dire portrayal of the situation. Time will tell.

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