Imagine you live in a country suffering from extreme inflation of 20% per month. The money you earn, every single molino, is worth a little less each week, so you and many others around you begin to use the currency of a more prosperous neighboring country, the dolingo. What is the term for this practice of adopting another country's currency?

Question

Quizplus · Accepted Answer

Dollarization is the term used to describe the practice of using a foreign currency in parallel to or instead of the domestic currency within a country. This usually happens in countries experiencing high inflation or instability with their own currency.

Imagine You Live in a Country Suffering from Extreme Inflation