Dollarization

Richard W. Stevenson’s article “Greenspan View on Wider Use of Dollar” discusses a process he refers to as dollarization. According to Mr. Stevenson, “A number of countries have been considering abandoning their national currencies and adopting the American dollar—the accepted international benchmark of stability—as a way of reducing interest rates, inflation, and exchange rate volatility.” It is this process that he refers to as dollarization. According to the article, several countries already …

…the dollar, but also “the types of policies that are required to create stability.” In other words, the US is on a political Crusade to convert other countries to its economical policies. That is where the comparison to the Euro (present throughout the entire article) fails. The Euro signifies an economical and political union of several able countries. Dollarization is yet another attempt of the US government to exert its influence on other countries’ affairs.