2023-09-28 20:28:41
Dollarization is one of the most attractive proposals for the electorate during these elections due to the high inflation rate that the country has suffered since the exit from convertibility.
In this context, we communicate with Manuel HidalgoSpanish economist, who spoke regarding the impact of eventual dollarization in the country.
Dollarization seen from abroad
“In Spain there was a debate when Javier Milei announced dollarization“There are people in favor and people who are once morest,” said Hidalgo, who then completed: “There is a comparison with Spain when it abandoned the peseta and joined the euro.”
“Dollarizing an economy means ceding monetary sovereignty to a third party, while adopting a common currency, such as the euro, tries to respond to the European cycle,” explained the economist.
Along the same lines, the interviewee spoke regarding external shocks: “Adopting a foreign currency can make the country less competitive.” “The exchange rate is a buffer once morest external shocks”he added.
Finally, Hidalgo said that the adjustments tend to be more intense. “Argentina is a powerful economy and dollarization might benefit relations trade with the United States but it would make trade with other countries difficult,” he concluded.
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