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      A SYNOPSIS OF THE DUAL CURRENCY SYSTEM IN CUBA

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      International Journal of Cuban Studies
      Pluto Journals
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            Abstract

            In wake of Cuba's severe economic recession following the dissolution of the Soviet Union, the Castro government implemented a series of reforms to counteract hyperinflation of its Cuban peso (CUP) and regain monetary stability. The legalisation of the US dollar and subsequent creation of the Cuban Convertible peso (CUC) ultimately achieved those goals, but the prolonged simultaneous circulation of two different currencies for two different sectors has hindered potential economic growth and produced unfavourable economic effects and incentives. The resulting 'inverted social pyramid' implies that highly skilled state-salaried professionals such as physicians or university professors often earn far less than taxi drivers and tour guides paid while working in the tourist sector; the negative implications of such a structure are clear. If these issues are to be eliminated, the Convertible peso must gradually be phased out through further monetary policy initiatives on behalf of the current administration.

            Content

            Author and article information

            Journal
            intejcubastud
            10.2307/j50005551
            International Journal of Cuban Studies
            Pluto Journals
            17563461
            1 April 2011
            : 3
            : 1
            : 43-50
            Article
            10.2307/41945927
            b39118eb-ed1c-4ae8-aeb7-af8c5e75a7a5
            © INTERNATIONAL INSTITUTE FOR THE STUDY OF CUBA

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Categories
            Academic Articles

            Literary studies,Arts,Social & Behavioral Sciences,History,Cultural studies,Economics

            References

            1. Casanova, Alfonso (ed.) (2002) Estructura Económica de Cuba, vol. 1. La Habana: Editorial Félix Varela.

            2. Centro de Investigaciones de la Economía Mundial (CIEM) (2000) Investigación sobre Desarrollo Humano en Cuba, 1999. La Habana.

            3. Comisión Económica para América Latina y el Caribe (CEPAL) (1997) La Economía Cubana: Reformas Estructurales y Desempeño en los Noventa.

            4. Marquetti, Hiram (2006) Cuba: Proceso de Desdolarización de la Economía, Impactos, y Perspectivas. Documento Particular.

            5. Perez-Lopez, Jorge F. (1997) 'The Cuban Economy in the Age of Hemispheric Integration', Journal of Interamerican Studies and World Affairs 39(3): 3-47.

            6. Vidal, Pavel (2008a) 'La Encrucijada de la Dualidad Monetaria', Editorial, Nueva Sociedad 216: 90-106.

            7. Vidal, Pavel (2008b) 'Los Salarios, los Precios, y la Dualidad Monetaria', Espacio Laical 2: 22-6.

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