In Argentina, the libertarian presidential candidate Javier Milei made headlines when he came in first in the primary on August 13. His economic program calls for a strong reduction in government spending and the role of government in general and would, if implemented, greatly improve the conditions of economic life in Argentina.
There is, however, one weak point—namely, his proposed monetary reform. Faced with high inflation rates and a depreciating peso, Milei proposes to dollarize the Argentinian economy. The details are not clear, but the idea is to swap pesos for dollars at the market rate (effectively making pesos claims on dollars) before finally abolishing the Argentinian peso.
All contracts, assets, and demand deposits would from then on be denominated in dollars, converted from
2023-09-30