Dollarization is a powerful antidote to the chronic problems caused by weak domestic currencies. By adopting a proven stable currency, countries with histories of high inflation or currency crises can instantly import credibility and stability.
For developing countries, there are virtually no downsides to replacing an “inferior” domestic currency with a “superior” foreign one. - Yours Truly
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In brief, I am a monetarist. MV = PQ.
“Inflation is always and everywhere a monetary phenomenon.” - Milton Friedman
💰 Inflation Control
Lowest inflation rates
Monetary discipline
Proven track record
📈 Economic Confidence
Investor trust
Currency strength
Market stability
💵 Financial Benefits
Lower interest rates
Better borrowing terms
Business growth
🎯 Key Success Metrics
Eliminate currency crises
Stop hyperinflation
Reduce interest rates
Boost investor confidence
Force fiscal discipline
🌎 Real World Examples
🇵🇦 Panama - No exchange risk
🇪🇨 Ecuador - Inflation tamed
🇲🇪 Montenegro - Stable growth
🇸🇻 El Salvador - Economic recovery