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They don't need actual dollars, just issue a currency with the exchange rate pegged to another one.
by freeone3000 9y ago
They don't need actual dollars, just issue a currency with the exchange rate pegged to another one.
- qwerty456127 9y ago... and screw it again a week later.
- gus_massa 9y agoHi from Argentina! We tried that too almost at the same time that Brazil tried the Real. If you are lucky and it is well done, you can convince people that "1 (ARG)Peso = 1 (USA)Dollar". It worked for 10 years ... (1991-2002) https://en.wikipedia.org/wiki/Convertibility_plan https://en.wikipedia.org/wiki/Convertibility_plan The main problem is that you must reduce the government deficit (that is usually not popular) or get external credit (but you must not be angry with the international banks).
- qwerty456127 9y agoA relatively reasonable government like that of Argentina or Brazil can indeed implement a monetary policy and play with deficit and the rate for good but if it consistently fails to it ought to at least provide the people with a usable trading token so they can take care of themselves. It's hard to say what it actually is but given the news we get outside the Venezuelan government is little but useless (not completely perhaps, maybe it keeps drug cartels away or something), they should just issue a reasonably limited amount of relatively valuable currency, halt all but some essential regulations and leave the people alone. Budget deficit cuttig is not popular? I believe the result Venezuelans are getting now are even less popular.