The solution is not unique, but as they say..... there are nuances.
Here is the list of countries, the currency used, and the executing entity, in a sense a Central Bank, but not a Central Bank.
Vatican/euro/Vatican Philatelic and Numismatic Office
Monaco/Euro/Ministry of Finance and Economy
Nauru/Australian dollar/-
San Marino/Euro/Central Bank of the Republic of San Marino
Liechtenstein/Swiss franc/Government of the Principality of Liechtenstein (coins)
Marshall Islands/US dollar/-
St. Kitts and Nevis/Eastern Caribbean dollar/Eastern Caribbean Central Bank
Maldives/Maldivian Rufiya/Maldivian Monetary Authority
Malta/Euro/ Central Bank of Malta
As you will notice, all of these countries have some things in common. But Argentina doesn't fit into this model..... Argentina needs very different solutions...
Topic: The refusal of the country from its own Central Bank - page 2. (Read 244 times)
More drastically, he also plans to shutter the central bank — which he said has “no reason to exist” — and dollarize the $640 billion economy.
“Central banks are divided in four categories: the bad ones, like the Federal Reserve; the very bad ones, like the ones in Latin America; the horribly bad ones; and the Central Bank of Argentina,” he said.""
The only thing worse than having your own central bank in charge of your money, is having someone else's central bank do the same.“Central banks are divided in four categories: the bad ones, like the Federal Reserve; the very bad ones, like the ones in Latin America; the horribly bad ones; and the Central Bank of Argentina,” he said.""
IF you want to improve the money system, ditch fiat money. Instead, base it on something real. Like backed by gold. Or 95% gold and 5% Bitcoin.
--Knight Hider
~snip~
And what's the problem? Are some countries willing to lose their financial independence and use someone else's currency?
Of course, all central banks follow the recommendations of the IMF and BIS, but this is a very radical idea.
And what's the problem? Are some countries willing to lose their financial independence and use someone else's currency?
Of course, all central banks follow the recommendations of the IMF and BIS, but this is a very radical idea.
It is not something that Argentina would be the first in, because some smaller countries have been using the US dollar as their national currency for decades. El Salvador has been on that list for more than 20 years and still uses $ as its official currency. I am not a supporter of such moves, although I can understand that at some point an individual country may find itself in such an economic situation that it looks for a way out by changing the national currency.
When you look at the European Union in relation to the eurozone, it is easy to see that there are countries that have accepted the common currency without any problems, but also those members who still want to keep their national currencies. I am of the opinion that every country should have its own national currency, but it is also a fact that there are very few countries in the world that understand what it actually means to have a state.
That guy from Argentina seems to me like some kind of anarchist who doesn't need a central bank, but would be happy to transfer the problem to the FED and foreign currency, which is not something that characterizes a good politician.
https://finance.yahoo.com/news/argentina-milei-vows-pay-country-184053945.html?
"Argentina’s leading presidential candidate Javier Milei pledged to close the nation’s central bank while saying he would make every effort to avoid a default on the country’s sovereign debt if he wins the October vote.
More drastically, he also plans to shutter the central bank — which he said has “no reason to exist” — and dollarize the $640 billion economy.
“Central banks are divided in four categories: the bad ones, like the Federal Reserve; the very bad ones, like the ones in Latin America; the horribly bad ones; and the Central Bank of Argentina,” he said.""
___
And what's the problem? Are some countries willing to lose their financial independence and use someone else's currency?
Of course, all central banks follow the recommendations of the IMF and BIS, but this is a very radical idea.
"Argentina’s leading presidential candidate Javier Milei pledged to close the nation’s central bank while saying he would make every effort to avoid a default on the country’s sovereign debt if he wins the October vote.
More drastically, he also plans to shutter the central bank — which he said has “no reason to exist” — and dollarize the $640 billion economy.
“Central banks are divided in four categories: the bad ones, like the Federal Reserve; the very bad ones, like the ones in Latin America; the horribly bad ones; and the Central Bank of Argentina,” he said.""
___
And what's the problem? Are some countries willing to lose their financial independence and use someone else's currency?
Of course, all central banks follow the recommendations of the IMF and BIS, but this is a very radical idea.
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