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Since Fiat money (paper banknotes) are often based on the strength of an economy of the country that issued it, it is unlikly that a bigger economy would be able to use the currency of a smaller economy due the amount of currency being printed (in circulation). The issuing country would avoid printing to much paper money, since they are a form promissory ...


7

United States of America used Spanish dollar as the (sole) currency until 1792 - it even remained a legal tender until 1857. EDIT: In 1820 (when the Spanish dollar was still a legal tender and widely used), US GDP was 12548 million dollars (in 1990 US dollars), Spain 12299 million dollars – and US grew very rapidly very soon since then, while Spain stagnated....


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Argentina is the classic case of a country that does not trust its own currency. Traditionally, Argentina suffers from inflation, so the US dollar is the refuge for most people. Actually, during the decade of 1990, Argentine currency was fixed to the dollar. So, during that time, Argentinians actually used their currency or dollars. I still remember those ...


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