• Dead_or_Alive@lemmy.world
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    11 months ago

    No it’s worse than that. How are they going to purchase enough dollars to replace their own currency? No one is going to give Argentina a loan to do this.

    This project is doomed before it starts.

    • 52fighters@kbin.social
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      11 months ago

      You get dollars the same way anyone else would in the situation: You carry a trade surplus vs. the United States and then allow tax payments to be made in dollars. Prices settle as a function of dollars available, rate of circulation, and volume of goods & services available.

      The policy should produce a boost in exports & employment but also produce a shortage of goods normally imported. It’ll also be a great time for Americans to visit, the dollar suddenly having a lot more purchasing power in Argentina.

    • marcos@lemmy.world
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      11 months ago

      The idea is that since the government can’t run a surplus by itself, he will break the capacity of running into deficit and making it so they don’t have any other choice.

      It’s a nice-looking, simple idea that some countries try here and there and never work on practice.

      • cyd@lemmy.world
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        11 months ago

        never work on practice

        There are several countries that use the dollar, including, in Latin America, Ecuador and Panama. They are doing fine.

        More pertinently, Zimbabwe’s famous hyperinflation was ended by dollarizing.

        So it’s not an outright crazy idea. I think the doomposting is mainly due to “right-wing therefore bad”.