Reform’s rise speaks to a deep crisis in Establishment parties – but relies on appealing to social and economic grievances the left should make its own, argues NICK WRIGHT
Argentina's dollarisation gambit: what does it mean in practice?
President Javier Milei's push for dollarisation is a class attack on workers, exacerbating the economic crisis. These neofascist measures are quickly revealing the failure of neoliberalism rather than socialism, writes PRABHAT PATNAIK
This year’s Bristol Radical History Festival focused on the persistent threats of racism, xenophobia and, of course, our radical collective resistance to it across Ireland and Britain, reports LYNNE WALSH
A maverick’s self-inflicted snake bites could unlock breakthrough treatments – but they also reveal deeper tensions between noble scientific curiosity and cold corporate callousness, write ROX MIDDLETON, LIAM SHAW and MIRIAM GAUNTLETT
The FBU is demanding 52 weeks of full pay for women firefighters, highlighting the unique health risks they face — and the continuing need to recruit and retain more women if policies like this are still not in place, writes SEONA HART
Israel continues to operate with impunity in what seems to be a brutal and protracted experiment, while much of the world looks on, says RAMZY BAROUD
A new report by Amnesty International pulls no punches in highlighting the Labour government’s human rights violations of those on benefits, says Dr DYLAN MURPHY
With Reform UK surging and Labour determined not to offer anything different from the status quo, a clear opportunity opens for the left, argues CLAUDIA WEBBE
ARGENTINA’S new president Javier Milei proposes to use US dollars as the currency of his country, while abolishing its central bank altogether. What is involved in this proposal is not just maintaining a fixed exchange rate between the dollar and the domestic currency, but an abolition of the domestic currency altogether.
The maintenance of a fixed exchange rate does not preclude the central bank of the country printing more of the domestic currency whenever there is a demand for more domestic currency, while using an array of instruments to ensure that there is no shift to dollars from the domestic currency so that its exchange rate remains fixed; but “dollarisation” means a complete shift to dollars by abolishing both the domestic currency and the central bank that is normally entrusted with the responsibility of printing it.
An example will make the difference clear. Suppose at the given level of the gross domestic product, of prices and the interest rate, the total demand for money happens to be 100 units of domestic currency, while its supply is 90; then the central bank can print 10 units of additional domestic currency with impunity, without any fear of this additional printing upsetting the fixed exchange rate vis-a-vis the dollar; but in the case of a “dollarised” economy where the dollar alone is the currency used, if the demand for dollars at the given level of GDP, of prices and the interest rate, happens to exceed the supply of dollars in the economy, then there is no question of printing any additional dollars since that can only be done by the US central bank and not by the central bank of the country in question, which in any case has been abolished altogether.
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