He american economist and ideologue of the Convertibility Plan, Steve Hanke stated that in order to resolve the inflationary crisis must be “close” the Central Bankby supporting the proposal of dollarization promoted by the presidential candidate of La Libertad Avanza, javier milei.
Hanke was one of the architects of the Convertibility Plan of domingo horse and is currently the main driver of dollarization in the country from the United States and advises the presidential candidate of La Libertad Avanza.
“The only way to solve the systemic problem of inflation in Argentina is close the Central Bank and the peso and put them in a museum,” said the economist.
What link does Steve Hanke have with Javier Milei?
“I’m focused on a single element of Javier Milei’s platform, dollarizationwhat is the only cheap medicine that can save the patient”, he explained in journalistic statements. In the same sense, he affirmed that said project “simply would rid Argentina of the pesowhat is the fuel of economic instability and poverty“.
And, when talking about his relationship with the presidential candidate, he stated: “I’m not in direct contact with Milei. However, I am in contact with some of your advisers regarding the issue of dollarization”.
Furthermore, he added that is currently “working with them in a work document that addresses objections to dollarization and the clichés that its opponents trot out”.
Hanke called “inexperienced” to the economists who criticize dollarization and pointed out that “one of the arguments that opponents of dollarization usually use in Argentina is that, with the dollar, Argentina would have no way of defending itself from external economic shocks.”
When refuting the argument, he pointed out that this opinion “is so pathetic that it’s funny, since the BCRA has a history of being an institution that has truly refined the art and science of generate economic shocks“.
Hanke explained that there are several models and, after remembering that it was adviser in the dollarization processes of Montenegro, Ecuador and Zimbabwestated that “they were all very successful”.
Finally, he argued that dollarization “has always resulted in the establishment of stability and a base for a economic boom and prosperity“.
Source: Ambito
