ABSTRACT
Dollarization is usually an acute monetary phenomenon. It accompanies short-lived inflationary processes. In Latin America, it is usual to hear of a threat of dollarization, but effective dollarization only takes place with hyperinflation. An exception is Argentina, where there is a historically new phenomenon: a chronic, long-lived dollarization. If chronic (inertial) inflation is particularly difficult to control, chronic dollarization is still more difficult.
KEYWORDS:
Dollarization; inflation; stabilization
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