Economy Argentina needs a recession, not dollarization

[DuingArter]

Argentina needs a recession, not dollarization, to tackle the peso crash, an economist says

Argentina needs a recession - not dollarization - to fix its plunging currency, according to Robin Brooks, chief economist at the Institute of International Finance.

markets.businessinsider.com

 

[Jetreee]

I tend to find the people who desire a recession are those that suffer least under the consequences of one

 

[earlyretirement]

I still say Dollarization will never happen for a lot of different reasons. I read many of that author's post on Twitter and he comes across as a level headed guy. However, lots of these "experts" only look at things on paper. They don't really understand how Argentina works and some of them probably have never even stepped foot in the country. But much of what he is saying is true.

 

[StatusNomadicus]

who desire a recession

this is a false premise; economic corrections occur naturally every ~7 years. you're conflating the desire of people to let the free market operate, with those Milei voters wanting hard times. they are not the same. recessions have to happen in any sort of environment; biological, economic, etc.

"As the Great Depression of the 1930’s and other similar economic calamities happened, economists turned their attention from supply and demand to the boom and recessions of economies. In 1936, John Maynard Keynes produced his now famous book The General Theory of Employment Interest and Money, which proposed a dominant view now known as Keynesian Economics. In it, he argued that government spending could make market adjustment and restoration of employment faster, with few negative side-effects. In this case, inflation would necessarily happen, but would be an acceptable alternative to mass unemployment as seen in the Great Depression. As A.W. Phillips discovered later, government’s intervention would be like choosing from a list of trade-offs, each of which would either cater to unemployment or inflation. Keynesian economics and its Phillips Curve would be criticized by the Chicago School, made up of economists like Milton Friedman. As mathematical models were studied, it became clear that the market was both more rational and more responsive than Keynes had thought." https://ichthyoid.writeas.com/the-history-of-economics-basic-economics-by-thomas-sowell-ch

Keynesian bad-economics (made-up theories with no evidence to support them) try to manipulate the market, which benefits the elites.

more bad news about the USA housing market, starting with the commercial sector:

https://twitter.com/x/status/1744017451036082466

and even with The Fed trying to lower interest rates, there's been so much economic destruction from Good-Idea-Fairly central planning, 2024 is the year that we feel a global recession that will make 2008 look like a sweet deal

https://twitter.com/x/status/1745156994317660436

 

[España]

Massa came out with this graph showing what Milei's economy has done so far.

https://twitter.com/x/status/1795611067638563108