My view is that the problems with fiat currency are often overstated. The key question is what's the alternative? Every choice of monetary system is subject to bad decisions by the central government about how to adjust the amount or growth rate, whether to abandon a peg or a gold standard, etc.
Stated differently, I view the fundamental problem as fiscal rather than monetary. when governments spend too much, they face a huge temptation to address that by printing money, one way or another.
My view is that the problems with fiat currency are often overstated. The key question is what's the alternative? Every choice of monetary system is subject to bad decisions by the central government about how to adjust the amount or growth rate, whether to abandon a peg or a gold standard, etc.
Stated differently, I view the fundamental problem as fiscal rather than monetary. when governments spend too much, they face a huge temptation to address that by printing money, one way or another.
Wouldn’t dollarization exacerbate the inherent problems with fiat currency?