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It's quite a risky plan when 1) you don't really have any dollars right now, 2) your country has more people than California, its economy is very different from
by pavlov 3y ago
It's quite a risky plan when 1) you don't really have any dollars right now, 2) your country has more people than California, its economy is very different from any American state, and after this move you'll be stuck with whatever the Fed does.
- graphe 3y agoThat sounds amazing and wonderful and awesome and great for Argentina because the Argentinan peso is worthless.
- jncfhnb 3y agoSounds great for your banks to have no currency?
- charlieyu1 3y agoFor ordinary citizens? Why would I care if my earnings are deprecating? I'm from Hong Kong and HKD is only worth anything because we are pegged to the dollar.
- jncfhnb 3y agoYou use HKD and your banks have HKD.
- graphe 3y agoThe Argentinan peso is for any imaginable purpose no currency. It's only use is to get cheap steam games when it's cheaper than turkey.
- jncfhnb 3y agoThat does not mean yolo switching to dollars is sensible
- dade_ 3y agoExcept compared the Argentinian peso for the last 40 years and that the population uses electronics such as televisions as currency / savings as it is. https://www.google.com/finance/quote/ARS-USD?window=5Y https://www.google.com/finance/quote/ARS-USD?window=5Y
- HNArg024 3y agoWe want to be stuck with whatever the Fed does. You might think that's stupid because the Fed is not great, but what we have right now is way worse. One of Javier's main goals is to remove to the Argentine politician the capacity to emit more useless currency. I don't know if he's going to go ahead with that proposal or if it's going to sleep forever "soon to come", but we are just tired of our politicians, at the point that we prefer to depend on politicians of another country to dictate our monetary policy...
- resters 3y agoWon't the pain be suffered primarily by the poorest Argentinians? If transit subsidies are removed, how will people get to their jobs?
- thriftwy 3y agoTheir employers will have to pay them more to commute in? Noy many things more stupid than subsidying somebody else's private for-profit business costs.
- Daishiman 3y agoI have no idea what world you live in where you think employee raises are managed in a thoroughly rational and logical way.
- thriftwy 3y agoThey will lose employees and will have to offer more to the new ones. The state will stop bleeding so much cash.
- JAlexoid 3y agoEm... I mean the American coal towns of just over 100 years ago paint a very different story. That's when you have government give exclusive power to use resources to individuals and provide firepower to them. Remove all limitations of contractual terms and all labor protections.
- BurningFrog 3y ago1) Is a real problem to the extent you want citizens to be able to exchange their old money to dollars. 2) Being stuck with what the Fed does isn't ideal, but VASTLY better than 130% inflation.
- Mengkudulangsat 3y agoMany developing countries are stuck with "whatever the Fed does" whether we like it or not. When the US raise interest rate we see large capital outflows wakening our currency.
- mytailorisrich 3y agoThe peso was pegged 1:1 to the US Dollar in the 1990s and people able to have been using US Dollars for a long time. There are a number of countries who use a currency over which they have not control, be it the US Dollar or the Euro. I suppose the trade off is that you get a stable currency and it makes trade easier.