On January 1, 2001, El Salvador "dollarized" its economy.The U.S.dollar circulated throughout the country along with the Salvadoran colon for the first year.By the end of 2002 the official currency circulating in this economy was the U.S.dollar.El Salvador abandoned its own currency and adopted the currency of the United States because:

Question

Quizplus · Accepted Answer

By adopting the U.S. dollar, El Salvador could not print its own currency, thus controlling inflation and preventing the government from financing deficits through money creation.

On January 1, 2001, El Salvador "Dollarized" Its Economy