Argument: Announcing dollarization can cause financial panic
- Tsang Shu-ki. "A Critical Comment on Government-sponsored Dollarization as a Rescue". Department of Economics, Hong Kong Baptist University. October 26th, 1998 - "During a currency crisis, like the one that many East Asian economies are now caught in, option (2) is highly problematic, if not exactly suicidal. To announce that the government is going to abolish the domestic currency one year from now might generate a financial earthquake: people would run for cover, the unofficial exchange rate of the domestic currency would plunge whilst interest rates rocket. It is likely that the real economy would suffer even more under this process of currency substitution."