tag:blogger.com,1999:blog-4865792164550550384.post2598817586638359067..comments2024-01-05T03:39:19.759+09:00Comments on La'o Hamutuk: 18 Years Later: Should Timor Drop the U.S. Dollar?Timor-Leste Institute for Development Monitoring and Analysishttp://www.blogger.com/profile/16199752710172148153noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4865792164550550384.post-18441471708822090162018-07-18T06:16:04.092+09:002018-07-18T06:16:04.092+09:00A good article - one that tries to put some of the...A good article - one that tries to put some of the complex economics of moving to a national currency in to simpler language. <br />It is also worth remembering that even if a national currency were adopted, it is very difficult to enforce its use. Take Serbia as an example - they have the Dinar, but for any significant transaction (buying property, renting an apartment, buying a car...) people use Euros - the largest transactions in Dinar are the government paying public sector salaries. Effectively the national currency becomes a tool for operating government, and in times of crisis it is easier to devalue the currency rather than cut public sector wages. I would foresee Timor operating in a similar manner. Implementing a national currency also tends to benefit the better off, who have savings in dollars, and hurts the poor, who have no dollars and who suffer most when the govt starts printing money to cover its budget deficit. Just some extra things to think about... Jqgnoreply@blogger.com