This post is a correction to my prior post assessing Argentinian President Javier Milei’s idea to dollarize Argentina.
The main thesis in the prior post is incorrect. Argentina already has a United States dollar economy at all levels, even outside the big city tourist areas like Buenos Aires. So there is no major need for Argentina to import significant quantities of US Dollars into the country, because they’re already there and widely circulated.
Furthermore, it certainly doesn’t hurt to have alternative currencies to switch to, like the US Dollar, which despite being heavily inflated itself, is relatively not, at least nowhere near compared to the Argentinian Peso. This phenomenon has been going on in Argentina for the past 45 years, a critical point that the earlier post failed to consider and acknowledge in forming the earlier and incorrect thesis.
That said, Milei should concentrate more on stopping the inflation of the Argentinian Peso, which he’s trying to do, in addition to abolishing the Argentinian central bank, as all nations must also abolish their central banks, especially the Federal Reserve in the United States.