Argentina switches to US dollar
- Thread starter EvolvedSaurian
- Start date
?Isn't Peru or Ecuador doing this right now?
During the '50's when Cuban Shopkeepers made change, there were as many American coins in the Registers as there were Cuban ones.
Even the Dollar Bills were exchanged one to one, and intermingled when being taken out of the Registers.
For this to work there would have to be a period when the US and Argentine money exchanged one to one.
During the '50's when Cuban Shopkeepers made change, there were as many American coins in the Registers as there were Cuban ones.
Even the Dollar Bills were exchanged one to one, and intermingled when being taken out of the Registers.
For this to work there would have to be a period when the US and Argentine money exchanged one to one.
ninebucks
Banned
This article dates from the days of the Argentine economic collapse, and the proposed 'dollarisation' could perhaps best be characterised as 'clutching at straws'.
Argentina has basically recovered now, and there's nothing to suggest dollarisation would have achieved recovery quicker without creating much worse side effects.
Argentina has basically recovered now, and there's nothing to suggest dollarisation would have achieved recovery quicker without creating much worse side effects.
Worse side affects like what? Those can be interesting too.
@DQ: Ecuador and Panama as well.
That was the case from 1991 to 2002 (1 Argentinian peso = 1 US dollar)
I agree. I don't think it would have helped, for various reasons. Mainly, I think that only countries who have similar economies and equal possibilities of dictating a common monetary policy should adopt a common currency. Adopting the currency of another country in whose economic policy you have no influence at all may cause a lot of problems in your country.
Still, it's an interesting scenario to analise.
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Peru is also fairly dollarized(is that a word), in an informal way. Shopkeepers accept dollars as readily as if they were pesos, and you can exchange pesos and dollars on the street. Well, at least it was this way in 2002, don't know how it is now, but I don't think things have changed.
ninebucks
Banned
Most middle-income nations have a sort of informal two-tiered dollarisation. In Israel, for instance, if you wanted to buy an ice cream cone, you'd buy it in shekels, yet, if you wanted to buy, se, a sofa, you'd buy it in dollars. I believe the same is also true in South Africa, and is probably the same in many other places.
Official or no, there is always the option to influence in the US government, however indirect. One possible happening is the opening of a serious "Argentina Lobby," which would take more informal and subtle attempts to help direct policies to Argentina's interest, such as money policy.
True, the men in control of the Federal reserve are appointed buecrats, but they listen to (and are confirmed by) Congress.
