All I know is now I want waffles. With strawberries. πππ
awardsurfer
joined 10 months ago
None of the above.
Only so many people can become partners or managers making $600K. You reach a point where you have to shit or get off the pot.
Iβm glossing over details. How they do it exactly weβll have to wait and see. Dollarization wont fix everything. Itβs main purpose right now is to stabilize inflation and the economy. But reforms to government , trade, etc are just as important.
The plan is to dollarize over about 12 months. Initially it will be driven by the people. Currently Argentina caps exchange to $200 per day (iirc). This has created a grey market. So all they have to do is remove this cap. People will rush to exchange their pesos for dollars. Eliminating this market will immediately make people better off by eliminating the grey market transaction time and fees. This will kick of dollarization.
The next step is to remove all the artificial exchange rates, Argentina has a bunch based on industry. More savings, more dollarization, better trade. As well as other trade barriers and regulations.
The plan is let the consumer economy drive dollarization until it reaches 2/3s of the money supply at which point the government will kick in and dollarize its accounts.
Thatβs the gist of it at least.
It may make things more expensive just like the euro did to Europe but it will create a stable growing economy. Itβll take a lot more but when you have runaway inflation for decades, itβs a start.
All I know is now I want waffles. With strawberries. πππ