Dollarization doesn't seem to be any worse or better than keeping control of your own currency.
There are issues, but they're probably outweighed by the benefits of not having your currency under political control.
In general, though, countries that have undergone unofficial dollarization are worse off because it shows that nobody trusts the local currency. That trust is what makes currency work, so unofficial dollarization is most likely more a symptom than a cause.
There are issues, but they're probably outweighed by the benefits of not having your currency under political control.
In general, though, countries that have undergone unofficial dollarization are worse off because it shows that nobody trusts the local currency. That trust is what makes currency work, so unofficial dollarization is most likely more a symptom than a cause.