Word: dollarization
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Dates: during 1980-1989
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...Greenspan strives to curb prices, he will have to watch for trouble in currency markets. A further steep decline in the value of the dollar could fan inflation, since it would cause new increases in the cost of imports. Greenspan apparently hopes to avoid that by allowing a modest rise in U.S. interest rates, which will make dollar-denominated securities more attractive to foreign investors...
...Just bear with me," he said. "Your dollar starts here. Right now, it's of no use to anyone, because it hasn't been spent yet. But the government moves quickly to rectify that situation"--magically we appeared on the pitching deck of a naval vessel--"by giving your dollar to defense contractors to build war materiel...
Next we appeared in a steaming jungle. "The defense contractor then gives your dollar to the leader of a banana republic, as part of a bribe to get him to buy the contractor's armored personnel carriers. The president of the banana republic then gives the dollar as part of a kickback to the local drug king, who gives it to help pay a drug courier, who spends it to buy a Coke when it gets to the United States. But the cashier drops it on the street and you find it." By now we were back in my room...
...much," he confessed. "I just thought I'd try out some of that supernatural gimmickry on you. I'm just getting the hang of it myself. Anyway, we're not done yet. I still have to show why you need to donate that dollar instead of spending it. You see, if you donate it, Harvard will be able to invest it here"--we reappeared on the pitching deck of the ship--"by buying stock in the defense contracting firm. If, on the other hand, you choose to spend it, your dollar will wind up here"--we reappeared in the steamy...
...sandwich makers," I said. "But it really doesn't matter. I don't want to give up my dollar. I--or rather, my parents--have already spent the better part of a hundred G's keeping me here, and frankly, I think I've done my part to keep Harvard in spending money...