Question

To analyze how dollarization helped/hurt Argentina, you could also compare Argentina to the performance of another country who did not dollarize. One of the criticism of fixed exchange rate (dollarizing is fixing your exchange rate) is that you lose monetary power. Perhaps you can assess this statement by looking at how the country responded / failed to respond to a crisis?

Answer 1

Fixed exchange rates limit the scope for independent monetary policy and that national monetary policy regains potency and independence, at least to some degree, if the exchange rate is allowed to fluctuate and/or restrictions are placed on convertibility.
In general, the more freely the exchange rate is allowed to float and the more tightly convertibility is controlled, the more effective the central bank can be in addressing domestic macroeconomic objectives. The downside, of course, is the potential distortion of economic activity caused by exchange rate risk and inefficient allocation of financial capital.

The benefits toArgentia for the dollarization can be analysed from the following point of view , Dollarisation will help Argentina to borrow at very low cost rate and also it will help Argentia to be very fast and deeply integerated ot th world capital markets.
However the challenge that Argentina will have is as we discussed before that , country loose its rights of excercising independt monetary powers and that right will move to US because it is doing dollarization.
Also in future of there are manor shocks in the economy,Argentia will not be able to do the independence devaluation of the currency.