June 1, 2002
Many eminent economists - Olivier Blanchard, Michael Bordo, Sebastian Edwards, Martin Feldstein, Ricardo Hausmann, Paul Krugman, Allan Meltzer, Michael Mussa, Joseph Stiglitz, Thomas Willett and John Williamson -- told us that dumping convertibility would work wonders in Argentina. Indeed, they trotted out every half-truth or non-truth under the sun to bolster their claims that the source of Argentina's problems was convertibility and that a floating peso, and pesofication of contracts and financial liabilities and assets were just what the doctor ordered.
Under the Convertibility Law, the
To save Argentina's decimated banking system, economist Steve Hanke proposes repealing the Central Bank's ability to issue pesos and giving solvent banks the ability to issue dollar-denominated notes.