According to Steve Hanke, a professor of applied economics at Johns Hopkins University, Argentina should urgently tackle the problem of its national currency. Earlier, the economist said that the country, whose inflation skyrocketed to 113.4%, should scrap the peso for the greenback to combat such high inflation.
What is more, Steve Hanke recommended that the country "mothball its central bank." The next step is to stop using the peso as a national currency. This measure is necessary to curb surging inflation.
Not so long ago, the professor at Johns Hopkins raised the issue of the Argentinian economy. He said that dollarization was the only way out of the debt crisis.
Steve Hanke emphasizes that official inflation in Argentina has reached 113% per annum. He supposes that the indicator may jump to 139% year over year. "In Argentina, official inflation has hit 113%/yr. STILL TOO LOW. I accurately measure inflation at a whopping 139%/yr ~1.2x the official rate. The solution: mothball the central bank and DOLLARIZE!" Hanke said.
Notably, Argentina's annual inflation came in at 113.4% in July. The rate remains close to June's peak of 115.6%, which was the highest level since 1991.