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> Changing to the dollar will help I fail to see how that would work. Argentina doesn't have a lot of US$ reserves. In order to have currency circulating, they
by cassianoleal 3y ago
> Changing to the dollar will help
I fail to see how that would work. Argentina doesn't have a lot of US$ reserves. In order to have currency circulating, they're going to have to get a lot more. How? By purchasing it with AR Pesos? But they won't have those either without a central bank.
- WheelsAtLarge 3y agoPegging goods directly to the dollar will help with inflation. People will earn relative to the dollar and price goods relative to the dollar not the peso so people will see the prices go up at a slower pace. Inflation is partly due to the anticipation of prices going up. It's a psychological fix. As time continues more dollars will get into the economy and the move to dollar will may be possible. It's a longer term solution. Also the central bank won't go away tomorrow if ever. The man is a president not a dictator so he still needs to deal with the rest of the government to get things done. He may want to get rid of the central bank but I doubt everyone will go with his ideas. It's only a possibility not a definite. People think he will do all the changes on day one but it's going to be years if ever.