This article analyzes why it is not necessary to include rules for monetary policy and how silently it goes against the dollarization system.
on monetary policy
Article 303 .- The formulation of policies monetary, credit, financial exchange and is the exclusive power of the executive branch and will be implemented through the Central Bank. The law shall regulate the circulation of legal tender currency in Ecuador. The implementation of financial and credit policy shall also through public banks. The Central Bank is a legal entity under public law, whose organization and operation will be established by law.
The formulation of these should be handled with technical and not political and that these will help to cover certain inefficiencies of the incumbent government and to satisfy any plan electioneering.
Monetary policy can not exist under a system of dollarization and the currency issue is not for the Central Bank of Ecuador, but the United States. This article by pointing means it leaves the door open for the demise of the dollar. This system was implemented to end the spiraling inflation and exchange who lived in Ecuador in late 1999 and early 2000. His virtue was to give monetary stability to plan long term and that the value of money is not going to depreciate gradually.
During the 8 years of dollarization not implemented real government policies that strengthen the foundations of the system but rather has been slowly destroying them. This government has not done anything to secure it but rather seeks their removal. Indeed, President Correa does not believe in dollarization and this is confirmed in an essay published as a professor in 2004. The essay is titled: "ECUADOR: Absurd Dollarized A monetary union. (There is a detailed analysis on this topic in the blog and can be found in the article entitled: De-Dollarization and currency in July 2007)
Dollarization is currently dependent on oil revenues (at a price variable) and migrant remittances. The global economic crisis, pushed by the United States is affecting the jobs of compatriots abroad which would lead to a significant decline in remittance income. Policy driven by government subsidies is one of the causes of the silent war against dollarization. Subsidies create distortions in the market, create false expectations among economic agents leading us into an unreal economy. If you do not live an economy based on efficiency results in the medium term will be severe.
The policy of creating a "welfare state" (health and free education to a large coverage) must be supported by permanent income because if experience a sudden drop will be impossible to meet the constitutional standard the "good life" and the usual boring rhetoric we release the hook and Ecuadorians will fall into the trap. The ruling placed on one side of the balance of dollarization and the other the "good life". And we can assume in advance what the fatal outcome.
is for each citizen to reflect on whether they want to return again that political patronage, waste and corruption through the printing machine of tickets.
Mail: emiliopa@gye.satnet.net 
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