Question

Why was India never dollarized?

Why was India never dollarized?

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Answer #1

When you dollarized your economy then USA can export inflationary impact to your economy by printing as much as they want and the country keep buying USD. But, dollarized countries cannot export their inflation. Thus there is very little gain of being dollarized and you suffer a lot. Hence, large countries like India was never dollarized.

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