Dollarize: Can this be the solution to control inflation?

April 9, 2019

Carlos Julio Emanuel, former Minister of Ecuador's Economy and Dollarization Mentor, spoke with Lanata Sin Filtro: "Dollarization ensures that the rate of inflation will remain as it is. "

Argentina is the sixth country with more l & # 39; inflation of the world and this is not a pride. Inflation seems to be the main problem of Argentine governments for 70 years. Some Latin American countries, such as Ecuador or El Salvador, have decided dollarize your economy to resolve this problem.

For its part, Ecuador he decided 19 years ago to dollarise his economy to control inflation and become a more competitive economy: "The results are positive, the economy protected to such an extent that it could counter this populist avalanche of the belt for more than 10 years. Ecuador does not have any inflation. Dollarization solves the problem of inflation, a tax that affects the most vulnerable clbades"He said Carlos Julio Emanuel, former Ecuadorian Minister of Economy and Dollarization Mentor in 2000, in dialogue with Lanata Without Filter.

"Today & # 39; hui, 99% of Ecuadorians support dollarization. Correa, the enemy of dollarization, has never tried to end it. Here in Ecuador, the salary is in the order of $ 400 and a worker knows that he will earn the same salary every month. So, stabilizes the consumption that is the basis of economic growthCarlos Julio Emanuel added.

For the former Minister of the Economy of Ecuador, the social cost of dollarization can be high, but less than the lack of implementation: "Dollarization has a social cost, but it is higher or lower than non-dollarization. This involves some adjustments, but the benefits far outweigh the disadvantages. Dollarization guarantees the maintenance of the rate of inflation where it is"

In turn, for Emanuel the conditions in Argentina "are given for the dollarization decision to be taken. The sovereignty of a country is not in a paper currency. Let's see what happened in Europe"