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The linked news article (batimes.com.ar/news/arg…) about the Argentine dollarization proposal quotes a consultancy warning about the following:
> If the market perceives that Milei has any chance of governing, it is most likely that we will see a run against the peso. It could even generate a sort of self-fulfilling prophecy, with peso-ho…
The linked news article (https://www.batimes.com.ar/news/argentina/mileis-policies-and-poll-numbers-spark-concern-in-argentina.phtml) about the Argentine dollarization proposal quotes a consultancy warning about the following:
> If the market perceives that Milei has any chance of governing, it is most likely that we will see a run against the peso. It could even generate a sort of self-fulfilling prophecy, with peso-holders fearing dollarisation and trying to get rid of their holdings, [thus] creating the conditions for this dollarisation.
What makes this a plausible risk for Argentine dollarization, but not Caribbean dollarization? Or is it a plausible risk for both? Or neither?
By the way, the St. Martin map is probably the only map in existence using 'baie', 'bay', and 'baai' in the names of three adjacent locations.
It is not a justified concern in that if you are dollarizing you do want people to transition to dollars. So that is an odd framing. We know from the experiences of Ecuador and El Salvador that bank deposits actually went up approaching and after dollarization (I will discuss this in more detail in future parts of this series). People were not fearing dollarization they were leaning into it - which is a good thing.
Got it, thank you.