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Doesn't Argentina have some kind of soft-peg to the USD? I suppose they could turn the Peso to a more conventional peg.
by krona 3y ago
Doesn't Argentina have some kind of soft-peg to the USD? I suppose they could turn the Peso to a more conventional peg.
- BurningFrog 3y agoThe Peso is soft pegged to a flushing toilet.
- throwaw33333434 3y agoThe learn more about this subject google "Argentinian pegging"
- hackeraccount 3y agoThey had a peg and moved off when then temptation grew too great. I think they've done that a couple of times. This is the tricky part of this by the way. For a sovereign state any preventative action is always the equivalent of me hiding the keys to the liquor cabinet from myself so I can quit drinking. In countries that make it work it's a tricky balance of political incentives and traditions but even there when the temptations are great - see the U.S. where any politcal imperative or norms for a sensible budget are outweighed by the temptations that seigniorage brings with it.
- katamarimambo 3y agothe "temptation" was caused by a massive speculative attack that moved billions of dollars out of the country, a depletion of reserves and the complete collapse of society in December 2001.
- johngladtj 3y agoYes of course, those evil speculators