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Dollarization doesn't seem to be any worse or better than keeping control of your own currency. There are issues, but they're probably outweighed by the benefi
by mannyv 3y ago
Dollarization doesn't seem to be any worse or better than keeping control of your own currency.
There are issues, but they're probably outweighed by the benefits of not having your currency under political control.
In general, though, countries that have undergone unofficial dollarization are worse off because it shows that nobody trusts the local currency. That trust is what makes currency work, so unofficial dollarization is most likely more a symptom than a cause.
- AnimalMuppet 3y ago> There are issues, but they're probably outweighed by the benefits of not having your currency under political control. But with the downside of having your currency under control of the Federal Reserve, which makes decisions based on conditions in the US, not Argentina.
- FacZap 3y agoThe thing you have to understand is that any central bank in the developed world is 10 times better than any version of the argentinian central bank of the last 50 years.