Cruzado versus dollar – what is the true Brazilian currency?
Abstract
The paper criticizes the so-called dollarization of Brazilian economy. The argument
is based on Marx’s discussion of the functions of money. The instrument elected to act
as money needs to act as means of payment, i.e., must be used to pay for the commodities
been transactioned. The dollar cannot yet perform this function because it does not exist in
a volume sufficient to pay for the commodities been transactioned.
JEL Classification: B51; E51; E31.
Keywords: Dollarization inflation Marxian economics