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dollarization

dollarization

1 7.2
Using the US dollar or another country's money instead of local money
  • noun
  • /ˌdɑːləraɪˈzeɪʃən/
  • Specialized
: dolarización
  • The dollarization of the economy allowed for greater foreign investment and increased financial stability.
  • the dollarization of the economy

But to exceed dollarization is in the short term at least, impossible.

Examples

  • Ecuador is the shining example of the benefits of dollarization: a country in constant political turmoil has been a bastion of economic stability, with steady, robust economic growth and the lowest inflation rate in Latin America.

    Academic text (2007)
  • Eventually, the dollarization of Cuba will destroy the peso economy and break the state's social control over the Cuban people.

    Academic text (1996)
  • For these reasons, the dollarization option has been pushed onto the back burner during the current crisis.

    Academic text (2001)
  • From another perspective, could we also say that the reserves mean nothing because they are a result of explicit dollarization?

    Blog text (13)
  • Indeed, much of Latin America has already experienced "spontaneous dollarization": despite restrictions in many countries, U.S. dollars represent over 50 percent of bank deposits.

    Academic text (2007)
  • It is often argued that dollarization is only feasible for small countries.

    Academic text (2007)
  • The continuous flow of dollars into the country was one factor behind the government's decision to adopt a policy of dollarization and has created a strong dependency on the US economy.

    Academic text (2004)
  • Although there were serious exchanges with U.S. financial officials in early 1999 about moving toward full dollarization, powerful nationalistic forces continue adamantly to oppose all such proposals.

    Academic text (2001)
  • Although the measure at first stabilized the economy, analysts now emphasize the downsides of dollarization, especially its negative effect on Ecuador's competitiveness.

    Academic text (2004)
  • Also, as mentioned above, the dollarization of the economy—some 70 to 90 percent of all transactions were carried out in dollars—helped limit the exchange rate impact of the regional economic crisis and the inflationary pressures.

    Academic text (2002)

Surface Forms

dollarization singular

Morphology

dollarization = dollarize (transparent) = dollar + ize + ation

Formed regularly from 'dollar' -> 'dollarize' -> 'dollarization', a predictable nominalization meaning adoption/use of the dollar.

Etymology

Dollarization comes from the common word dollar plus the ending -ization, where -ization means 'making' or 'process'. So dollarization is the process of using the US 'dollar' or other foreign money instead of the local money.