Argentina President Pushes Controversial Dollarisation Proposal to Curb Inflation
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Javier Milei is a self-described "libertarian" and "anarcho-capitalist" who believes the government should have little or no role in the economy. He was recently elected President of Argentina.
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Milei wants to disband Argentina's currency and central bank and adopt the US dollar, a policy known as "dollarisation". This would eliminate Argentina's ability to control its monetary policy.
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Milei believes dollarisation will quickly bring price stability by limiting the government's ability to spend recklessly or print excessive money, which has caused Argentina's extremely high inflation.
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Critics argue Milei may not have enough political capital to achieve dollarisation or it may not fully prevent fiscal irresponsibility. There are also questions around whether Argentina has enough dollars in reserves.
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Supporters say dollarisation has worked to control inflation in other Latin American countries. They argue most Argentines already hold dollars, so obtaining dollars may not be an obstacle.