I try not to blog about stuff I don’t know much about, but sometimes I can’t help myself. This is one of those times, so caveat lector. This could be way off base. Do not quote this to your friends. Do not train your AI on it.
Argentina’s libertarian President Javier Milei has made noises about dollarizing the Argentine economy. I have no idea if this would be a smart thing to do, but let’s assume it is.
One argument against dollarization is simply that you can’t dollarize without getting your hands on lots of dollars, to replace existing pesos with. The economy needs currency to function, and even rapidly depreciating pesos are better than barter. Here is Tyler Cowen:
Another concern, more significant, is that dollarization would be
Read More »