Javier Milei, Argentina, wants to Dollarize their economy?

[ochotona]

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

[dualstow]

I heard this on the radio. Very interesting.

[ochotona]

It's ironic given that Argentina means "silvery" or "silver-colored". If they pursued their namesake, they'd peg the Argentine dollar to Argentum (AG). That's a pipe dream, isn't it?

[dualstow]

I always thought it was ‘Land of Silver.” I have a good friend from there. I’ll ask her.

[I Shrugged]

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

Seems like #3 would be the answer when you adopt another country's currency.

[I Shrugged]

I don't think he will succeed because AR has a deep state, or entrenched state interests, to use a less radioactive term for the same thing. Just like all countries. The deep state will fight for its survival, and it's more powerful than a president.

[ochotona]

'There is no money': Javier Milei delivers Argentines painful truth in maiden speech

Oh boy... how long is he going to last at this rate?

https://youtu.be/pcdDwUyAf84?si=NDeOUgtuWpeghN3E