A prevalent concern surrounding Argentina’s potential dollarization is the fear that its implementation might trigger hyperinflation. However, I find this concern perplexing. Argentina stands on the precipice of hyperinflation due to years of monetary mismanagement. Contrary to the common belief that dollarization would escalate the risk, it is, in fact, a consequence of Argentina once again heading toward hyperinflation. Argentines are trying to run away from hyperinflation, even if that means dollarization.
Dollarization and Hyperinflation
Dollarization and Hyperinflation
Dollarization and Hyperinflation
A prevalent concern surrounding Argentina’s potential dollarization is the fear that its implementation might trigger hyperinflation. However, I find this concern perplexing. Argentina stands on the precipice of hyperinflation due to years of monetary mismanagement. Contrary to the common belief that dollarization would escalate the risk, it is, in fact, a consequence of Argentina once again heading toward hyperinflation. Argentines are trying to run away from hyperinflation, even if that means dollarization.