Currency Substitution in Mexico.

The article focuses on the currency substitution of demand deposits in Mexico. The article explains that "dollarization" is defined as the degree to which real and financial transactions are performed in dollars relative to those realized in domestic currency. The author states that previous studies suggest that monetary policy will become useless in a country where foreign currencies are used as substitutes for domestic currency. The article also discusses dollarization from a historical perspective and the causes and effects of the dollarization of demand deposits.