The Economist Gets It Wrong on Dollarization in Argentina

The Economist misunderstands the most fundamental aspects of Milei's plan to dollarize Argentina and shut down its central bank.

The Economist misunderstands the most fundamental aspects of Milei's plan to dollarize Argentina and shut down its central bank. This is, in ...

As Mr Milei is quick to point out, Argentina's central bank has been one of the most irresponsible. Dollarisation would put the printing presses ...

The Economist assures that inflation‐ridden Argentina should not and cannot dollarize. But, by depriving the local political class of all ...

If we add to this mix the monetary overhang generated by Argentina's foreign-exchange restrictions and the ballooning financial debt of the BCRA ...

In Milei's view, replacing the peso with the dollar was, above all, a moral mandate: in essence, he argued, printing money is as wrong as ...

Javier Milei: Argentina has been in decline for more than 100 years as a consequence of embracing ever-increasing doses of socialism. This ...

Milei believes that the problem of Argentina is that the government spends too much (fiscal policy problems). Then, the Central Bank issues ...

In the absence of dollarization, Argentina would likely continue to meddle in foreign exchange markets to try to restrain prices, and there is ...

Don't get me wrong: Dollarization would be great — if the country had a spare $30 billion to back each peso with dollars. But Argentina doesn't ...

The second problem is more practical: where would Argentina get its dollars from? At present, the central bank has almost no US dollar ...

Rampant inflation, a booming black market for US dollars and crippling debt - welcome to Argentina, one of the world's most dysfunctional ...

He's wrong in his belief that the Argentine government is capable of making the necessary changes. They've repeatedly proven that they just don' ...

What about dollarisation, Mr Milei's most eye-catching policy? When a country's financial credibility is in shreds, adopting the greenback in ...

In the past five years, its currency has lost about 90% of its value against the U.S. dollar. Its debts, including $45 billion that it owes the ...

In a recent article, Bloomberg's Eduardo Porter relies on myth # 3, claiming that dollarization in Argentina is “a dangerous delusion” because “ ...

The antidote to inflation, in Argentina, has been dollarization— dollarization as a spontaneous individual substitution of the peso by the ...

But dollarization is not a panacea for Argentina's crisis-stricken economy, analysts say. “(The policy) is seen as this kind of silver bullet ...

Clearly dollarization cannot do magic. But believing that Argentine policymakers will use monetary policy to do “the right thing” is magical ...

Dollarization was at the core of Javier Milei's campaign. And, undoubtedly, one of those pragmatic and no half-measures proposals that most ...