Global Implications of Dollarizing Economies to Attain Monetary Stability Dollarization is when one country abandons its own currency in favor of another country’s currency. This is good because it will provide a stable currency but unfortunately the country who changed it’s currency has no monetary independence and no power to print currency. This means that the country controlling the currency may not keep in mind the affect actions may have on the secondary …showed first 75 words of 429 total…

…showed last 75 words of 429 total…had a fixed exchange rate with the US dollar. At the end of the economic boom the government was enjoying an increase in tax revenue which led to increased prosperity and a sufficient reserve. This boom has affected the inflation rates. The risk of inflation is greater now then it was but even with one of the highest inflation rates in Europe, the average inflation of 2.5 percent is not yet cause for alarm. Bibliography none