Question
Can you think of any major disadvantages to dollarization? How would a central bank work in a country that has dollarized?
Step 1
Dollarization is the process by which a country decides to use a foreign currency (in this case, the U.S. dollar) as its official currency. This can be a full dollarization, where the country only uses the foreign currency, or a partial dollarization, where the Show more…
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