In particular, he emphasizes the loss of seigniorage as a result of moving from national currency to dollarization .
The appreciated exchange rate and the partial dollarization of the local banking system are not necessary ingredients of a currency board regime.
Last but not least, full dollarization can improve the global economy by allowing for easier integration of economies into the world's market.
Monetarists have also defended the use of currency boards and direct dollarization , that is, the abandonment of domestic currencies, for the same reason.
Despite these protests, the government has insisted that dollarization is in the best interest of its citizens.
He had disclosed his intention to carry on the dollarization programme set up by his predecessor.
I would argue that its economic future would be jeopardized by elimination of the currency board and that a better course would involve full dollarization .
The costs of official dollarization compared with a currency board are somewhat different.
In qualitative terms, the benefits of official dollarization also apply to a currency board system, although their quantitative significance will vary from country to country.
Where inflation and nominal interest rates are very high, dollarization may improve government finances by increasing real revenue.