AH Challenge: Argentina swiches to US dollar by 1999

Would Argentina avoid the 2002 collapse if Argentina swiches to US dollar


  • Total voters
    19
This discussion is not new in Argentina. In 1999, in the height of Brazilian devaluation, President Menem tried to swich Argentina to US dollar totally, but this plan had never materialized because his term has been ended later at that year and his successor, Fernando de la Rua is not interested of total dollarization of Argentina.

What would be the POD if Argentine peso retires and convert it to US dollar totally?

Would the 2002 economic collapse happened if Argentina swiches into US dollar?
 
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I've voted wrongly!!! I wanted to vote no! . I think the colapse would NOT have been avoided. Our problem was to be attached to a currency that was too high in the world's currency market. this affected severely our possibility of exporting, and made us have a big commercial deficit. Switching to the dollar wouldn't have solved anything, it would just have worsen the problem.
 
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maverick

Banned
What's your fixation with our country? especially since you seem to have very wrong notions of it?

I'm of course confident that he won't read or respond to this, so I'll continue: why couldn't he choose Brazil?:(:p

Well, of course, if white settlers can make us better, white money surely will...anglo-saxon power to the rescue!
 
What's your fixation with our country? especially since you seem to have very wrong notions of it?

I'm of course confident that he won't read or respond to this, so I'll continue: why couldn't he choose Brazil?:(:p

Well, of course, if white settlers can make us better, white money surely will...anglo-saxon power to the rescue!

I've no bad notions of making this thread. I'm just asking the posters like you whether in favor of dollarization or not.

Personally, I'm against to the total dollarization of Menem. The pegging of 1 Argentine peso to 1 US dollar is the biggest mistake of Argentina, why? because of the 1-to-1 peg, Argentina at that time gives up its control of the monetary policy and Menem and Cavallo pass this responsibility to the US treasury which the biggest loser are the Argentine people like you Maverick. Menem and Cavallo killed the industrial sector of Argentina because Argentine exporters could not compete to Brazil due to the rigid policy of Convertibility. Menem and Cavallo doesn't prioritizes the fiscal discipline which results to the decreasing of all revenues for their personal ambitions. Today, Argentina is one of the fast growing economy in the world under the new foreign exchange regime similar to China and the industrial sector is reviving in Argentina under Kirchner.
 

maverick

Banned
I've no bad notions of making this thread. I'm just asking the posters like you whether in favor of dollarization or not.

Personally, I'm against to the total dollarization of Menem. The pegging of 1 Argentine peso to 1 US dollar is the biggest mistake of Argentina, why? because of the 1-to-1 peg, Argentina at that time gives up its control of the monetary policy and Menem and Cavallo pass this responsibility to the US treasury which the biggest loser are the Argentine people like you Maverick. Menem and Cavallo killed the industrial sector of Argentina because Argentine exporters could not compete to Brazil due to the rigid policy of Convertibility. Menem and Cavallo doesn't prioritizes the fiscal discipline which results to the decreasing of all revenues for their personal ambitions. Today, Argentina is one of the fast growing economy in the world under the new foreign exchange regime similar to China and the industrial sector is reviving in Argentina under Kirchner.

Just like the German national industries thrived under Hitler...

Its just a mirage, not real long-term growth...economy seems to be growing, just how it seemed to be growing under Menem...

And as many others have said, Dollarization would have fucked up things even more...
 
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