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Milei Campaigned on Dollarizing Argentina. As President, He Stopped Talking About It.
Javier Milei made replacing Argentina’s peso with the US dollar a central promise of his 2023 presidential campaign, arguing that repeated currency failures had left the country’s institutions without credibility. More than two years into his presidency, the peso remains and Milei has largely stopped promoting dollarisation, raising questions about whether his government’s fall in inflation can last.
Monthly inflation has dropped from 25.5 per cent when Milei took office to roughly 2 per cent, but the article says earlier stabilisation efforts in Argentina ended in currency crises. A currency board collapsed during the 2001 crisis after the government dismantled its peg; the author argues that formal dollarisation could be harder to reverse and thus make future devaluation less likely. The supplied article text ends mid-sentence.
In short
- Milei campaigned to replace Argentina’s peso with the US dollar.
- Inflation fell from 25.5 per cent monthly to about 2 per cent.
- The article argues dollarisation could make stabilisation more durable.
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The case for
Dollarisation could help restore confidence after repeated failures of the peso by making money creation and devaluation harder for future governments. Its supporters may argue that this stronger commitment would make stabilisation more durable, especially given Argentina’s history of currency crises.
The case against
Keeping the peso preserves the government’s ability to respond to economic shocks and avoids the practical costs of replacing the currency. Supporters of the current approach may argue that falling inflation shows stabilisation can advance without dollarisation, while a rigid commitment could constrain policy and prove difficult to manage.