Javier Milei, Argentina, wants to Dollarize their economy?
Posted: Mon Nov 20, 2023 8:06 am
How is that going to happen? Which of the three will he be willing to sacrifice? I think he'll try to keep all three, and it will be a failure.
Wasn't the problem with Greece that they took out loans which they then had to pay back with real money (Euros) and not monopoly money (Drachma)? Had they still been on the Drachma, they could have paid them back nominally, but let the Drachma float?
That's usually what happens, they think "this time it's different" but it never is. It's a cool country, I have been there several times and have enjoyed many churrasco steaks, but... I don't know what they should do. The questions and answers are way above my pay grade.
Wikipedia:
The impossible trinity (also known as the impossible trilemma or the Unholy Trinity) is a concept in international economics and international political economy which states that it is impossible to have all three of the following at the same time:
1. a fixed foreign exchange rate
2. free capital movement (absence of capital controls)
3. an independent monetary policy
Wasn't the problem with Greece that they took out loans which they then had to pay back with real money (Euros) and not monopoly money (Drachma)? Had they still been on the Drachma, they could have paid them back nominally, but let the Drachma float?
That's usually what happens, they think "this time it's different" but it never is. It's a cool country, I have been there several times and have enjoyed many churrasco steaks, but... I don't know what they should do. The questions and answers are way above my pay grade.
Wikipedia:
The impossible trinity (also known as the impossible trilemma or the Unholy Trinity) is a concept in international economics and international political economy which states that it is impossible to have all three of the following at the same time:
1. a fixed foreign exchange rate
2. free capital movement (absence of capital controls)
3. an independent monetary policy