Politically, dollarization also specifies how well the organization of the country is as well as promising before running the government due to senators' decision. Dollarization is affecting on trade mostly in the economy as some economists in the world have argued commonly. With the countries that use foreign currency, or substitute the domestic currency with foreign currency to use in a private transaction which it is not legal tender, is known as unofficial dollarization[UKE03]. This case can be found in most of the former Soviet Union, and most of Latin America, because they use foreign currency in a way which is not legal tender. While some other countries, they adopted the U.S dollar as their official semi-dollarization which means that the currency in the country is used as US dollar legal tender, and their domestic currency is still used in their country at the same time[UKE03]. Additionally, Cambodian people also use foreign currency, which is the US dollar and the use of Cambodia's currency, riel, in every transaction. Obviously, the official semi-dollarization is very common and acceptable for Cambodia to conduct dollarization in economy. Indeed, everyone in all nations should know the basis of existing money, dollar, dollarized economy as well as possible to conduct our own rational expectation hypothesis in order to satisfy individual or household decision making economically, and properly. .
III. Evaluating Dollarization in the World Economy .
1.1. Existence of Dollarization in the Economy Worldwide.
Generally, most countries in the world use their national currency in economy. Specifically, U.S dollars are the most common currency that many nations in the world use as the medium exchange for transaction demand worldwide. Keynesian (2010, p.346) argued that, people globally use the money in three different purposes such as; transaction demand, precautionary demand, and store of values.
