Explain an additional disadvantage for a country undergoing dollarization compared to a currency board or other exchange-rate targeting regimes
What will be an ideal response?
The additional disadvantage to dollarization is that the government loses seignorage. Seignorage is the income that a government earns by issuing its own currency.
Economics
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Each point on the supply curve shows the: a. amount that people want to buy at that price
b. quantity supplied at that price. c. productive capacity of an individual producer. d. the amount producers want to sell to buyers of different income levels.
Economics
The emphasis on the greater incentives to produce, created by lower taxes, has come to be known as:
a. the trickle-down economics. b. the supply-side economics. c. the paradox of thrift. d. the permanent income hypothesis. e. monetarism.
Economics