The Tanzanian Model
by Marcus Noland | June 6th, 2012 | 05:45 amIncumbent governments generally don’t like it when citizens stop using the local currency of favor of foreign alternatives. Not only is it a blow to prestige, practically advertising the local sovereign’s ineptitude, but the state suffers financially as well, as its recourse to seigniorage, or the inflation-tax, erodes as a means of financing its budget. [...]