"Why not go the route of recapitalising BCRA, confirming the independence of the central bank, while focussing on fiscal and balance of payments sustainability needs given these steps? Then there is at least a chance of avoiding the mistakes from the quasi-currency board and learning from the past. At last."

Yes, I agree this would be better approach. But is it a feasible option? Surely, it would have been implemented long before now if it were doable. The fact that it has not happened suggests otherwise. Which brings us back to the radical option of dollarization.

My question, then, is whether the lack of state capacity that has prevented your preferred approach from happening, will also be a constraint to implementing dollarization in Argentina.

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