We document the main patterns in Ecuador’s ﬁscal and monetary policy during the 1950–2015 period, and conduct a government’s budget constraint accounting exercise to quantify the sources of deﬁcit ﬁnancing. We ﬁnd that, prior to the oil boom of the 1970s, the size of the government and its ﬁnancing needs were small, and the economy exhibited high growth rates and low inﬂation. The oil boom led to a massive increase in government spending. The oil prices crash of the early 1980s was not accompanied by any substantial ﬁscal correction, and the government considerably relied on seigniorage as a source of revenue. This coincided with almost three decades of high inﬂation rates and stagnant output. The dollarization regime, implemented in 2000, removed the ability of the government to resort to seigniorage to cover its imbalances. Indeed, in spite of large deﬁcits registered since 2007, inﬂation has remained at historically low levels. However, the recent policies of inﬂated spending—and the heavy borrowing needed to ﬁnance it—remind those that led to the collapse of the economy during the 1980s and 1990s, and generate concerns regarding the long-term sustainability of the dollarization regime, and of the beneﬁts it has provided.