Argentina’s President-elect, Javier Milei, is advocating a bold economic move by considering the adoption of the U.S. dollar and dismantling the central bank to combat soaring inflation. This echoes strategies employed by other Latin American nations like Ecuador and El Salvador, which officially embraced dollarisation to stabilize their economies. Ecuador’s shift in 2000, following a banking crisis, led to a swift reduction in inflation. El Salvador adopted the dollar in 2001 to attract foreign investment, though it faced challenges. In Venezuela, dollarisation has taken a more informal route. Examining these precedents offers insights into the potential implications and challenges of Milei’s proposed economic transformation.
Javier Milei’s Dollarisation Plan: Learning from Latin American Precursors
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