Funny thing is, NZ is actually stricter on this issue than Australia.
cyd
joined 2 years ago
never work on practice
There are several countries that use the dollar, including, in Latin America, Ecuador and Panama. They are doing fine.
More pertinently, Zimbabwe's famous hyperinflation was ended by dollarizing.
So it's not an outright crazy idea. I think the doomposting is mainly due to "right-wing therefore bad".
Voters really really don't like mass immigration.
At the same time, the gravity systems are designed by the best engineers in the Federation because they never, ever, give out, even when the rest of the ship is disintegrating.
"Sir, this is ~~an Arby's~~ a kebab truck."
Pointing to Japanese money supply versus inflation is irrelevant because Japan doesn't fund its fiscal deficit via monetization. It issues debt, just like every other non-basket case economy on Earth.
The distinction is important. Debt is tied to a promise to repay later. Monetization has no such promise, so it's functionally equivalent to issuing debt and then immediately defaulting. So long as lenders believe debt will be repaid, the effects are different from monetization.
You might be confusing debt issuance with money issuance.
Governments often issue debt to fund various kinds of spending. And despite concerns about debt levels, they can have a pretty fuzzy relationship with inflation; Japan has public debt of over 200% of GDP, and an underinflation problem.
But issuing money for the purposes of government spending -- the monetization of fiscal policy -- is almost always a bad idea, outside of wartime. The practice is behind every single episode of hyperinflation in economic history. And governments know this. Fiscal monetization is only resorted to by countries that have exhausted their ability to borrow; if cutting spending isn't politically feasible, the remaining resort is monetization. That's basically how you get to Argentina's situation.
As for giving up monetary autonomy, it is indeed a serious drawback to dollarization. But this is a second order problem compared to the kinds of problems facing Argentina, like findng a guy bleeding out after a road accident, and worrying about his obesity.
1930s Germany isn't always the best analogy for every situation anywhere, anytime. For one thing, the Weimar government was actually doing a decent job of rebuilding its economy after the war; they were kneecapped by the onset of the Great Depression, which was not their fault. Without Hitler, Germany would have eventually turned the corner and headed for economic prosperity.
In Argentina's case, the problems are the direct result of the Peronists' decades-long dominance, and their uncanny ability to adopt every single bad idea on the economic left. Without getting rid of them, there's no future for the country.
That was fake news; he had a bad signal in his earpiece during an interview. Milei has enough wacky qualities (like whatever the hell is going on with him and his dogs) without dipping into misinfo.
Ecuador, El Salvador, and Panama.
Israel seems to be taking pointers on international diplomacy from the People's Republic of China. Weird, I always pegged Israel as being pretty savvy at PR. This "wolf warrior diplomacy" style truculence is totally counterproductive for them, as it is for China.