In his election pledges President-Elect Javier Milei promised the people of Argentina two things. First, he would do dollarize the economy. He’d ditch the Peso and replace it with the, already widely used, UD dollar. Secondly, he would abandon the central bank, who he blames for the rampant inflation, which is one part of many fronts of destruction against the Argentinian economy. But can a country really do without a central bank, even if it is reliant on the currency of another country? This week Phil and Steve talk about the roles of central banks – everything from controlling inflation, to maintaining the stability of the banking sector. Could it all be managed by governments internally? Some of the work is deeply technical and people in governments don’t tend to be very good at anything that requires working with numbers.
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