2006-07-24 06:55:37 · 3 answers · asked by Olivia 4 in Politics & Government ➔ Politics
It is important to the Federal government because they can tax wealth by lowering the value of our currency.
2006-07-24 07:31:36 · answer #1 · answered by e1war 3 · 1⤊ 0⤋
By dollarization, do you mean that the dollar is accepted as the preferred currency for many transactions throughout the world? If so, it is very important. We get to print money (for virtually nothing) and people around the world give us valuable goods and services for this paper. Furthermore, we have no 'currency risk' from fluctuating currencies. That is, if oil were priced in Euros and the Euro went up in value compared to the dollar, we can get screwed twice....once on the rising price on oil and secondly on the rising price of the Euro.
2006-07-24 14:15:33 · answer #2 · answered by Brand X 6 · 0⤊ 1⤋
Huh? Our monetary system already IS the dollar. So, what is the point of the question?
2006-07-24 14:13:39 · answer #3 · answered by Vince M 7 · 0⤊ 1⤋