Question A:

The fundamental cause of Argentina’s high inflation is unfunded fiscal commitments that are being financed by the central bank.

Responses weighted by each expert's confidence

Question B:

Even if Argentina could marshal the resources to make a full switch to using US dollars for domestic transactions, it would substantially increase the volatility of Argentine GDP.

Responses weighted by each expert's confidence

Question A Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Agree
3
Bio/Vote History
Altonji
Joseph Altonji
Yale
Agree
7
Bio/Vote History
Auerbach
Alan Auerbach
Berkeley
Agree
5
Bio/Vote History
Autor
David Autor
MIT
No Opinion
Bio/Vote History
Banerjee
Abhijit Banerjee
MIT Did Not Answer Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Strongly Agree
4
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Strongly Agree
8
Bio/Vote History
Chetty
Raj Chetty
Harvard Did Not Answer Bio/Vote History
Chevalier
Judith Chevalier
Yale Did Not Answer Bio/Vote History
Cutler
David Cutler
Harvard
Agree
3
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Agree
7
Bio/Vote History
Based at least on news reports, the premise of the question is correct. Given that premise, inflation easily follows.
Edlin
Aaron Edlin
Berkeley
Strongly Agree
10
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Strongly Agree
5
Bio/Vote History
Einav
Liran Einav
Stanford
No Opinion
Bio/Vote History
Fair
Ray Fair
Yale
Agree
5
Bio/Vote History
Finkelstein
Amy Finkelstein
MIT Did Not Answer Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago Did Not Answer Bio/Vote History
Hall
Robert Hall
Stanford Did Not Answer Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
6
Bio/Vote History
Holmström
Bengt Holmström
MIT
Agree
4
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
No Opinion
Bio/Vote History
Judd
Kenneth Judd
Stanford
Agree
7
Bio/Vote History
Kaplan
Steven Kaplan
Chicago Booth
Agree
7
Bio/Vote History
Kashyap
Anil Kashyap
Chicago Booth
Strongly Agree
7
Bio/Vote History
Klenow
Pete Klenow
Stanford
Strongly Agree
10
Bio/Vote History
Levin
Jonathan Levin
Stanford
Agree
4
Bio/Vote History
Maskin
Eric Maskin
Harvard
Agree
7
Bio/Vote History
Nordhaus
William Nordhaus
Yale
Agree
4
Bio/Vote History
Obstfeld
Maurice Obstfeld
Berkeley
Agree
5
Bio/Vote History
Saez
Emmanuel Saez
Berkeley Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Agree
6
Bio/Vote History
The government's enthusiasm for printing money to finance its spending appears to be a major cause of its inflation, though other factors have contributed as well.
Scheinkman
José Scheinkman
Columbia University
Agree
7
Bio/Vote History
Schmalensee
Richard Schmalensee
MIT Did Not Answer Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Agree
8
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Strongly Agree
10
Bio/Vote History
Stock
James Stock
Harvard Did Not Answer Bio/Vote History
Thaler
Richard Thaler
Chicago Booth
Agree
3
Bio/Vote History
Udry
Christopher Udry
Northwestern
Agree
2
Bio/Vote History
Not sure about "fundamental"

Question B Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Agree
5
Bio/Vote History
Altonji
Joseph Altonji
Yale
Uncertain
3
Bio/Vote History
Auerbach
Alan Auerbach
Berkeley
Uncertain
5
Bio/Vote History
Autor
David Autor
MIT
No Opinion
Bio/Vote History
Banerjee
Abhijit Banerjee
MIT Did Not Answer Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Uncertain
1
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Agree
4
Bio/Vote History
The current volatility given current policies is also high.
Chetty
Raj Chetty
Harvard Did Not Answer Bio/Vote History
Chevalier
Judith Chevalier
Yale Did Not Answer Bio/Vote History
Cutler
David Cutler
Harvard
Uncertain
3
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Uncertain
7
Bio/Vote History
Although GDP volatility with dollar domestic transactions would probably be higher than with optimal peso-based monetary policy, it might be lower than with actual peso-based monetary policy. The answer depends on one's assumption about future central-bank effectiveness.
Edlin
Aaron Edlin
Berkeley
No Opinion
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Agree
5
Bio/Vote History
Einav
Liran Einav
Stanford
Agree
1
Bio/Vote History
Fair
Ray Fair
Yale
Uncertain
5
Bio/Vote History
Finkelstein
Amy Finkelstein
MIT Did Not Answer Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago Did Not Answer Bio/Vote History
Hall
Robert Hall
Stanford Did Not Answer Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
5
Bio/Vote History
Holmström
Bengt Holmström
MIT
Uncertain
4
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
No Opinion
Bio/Vote History
Judd
Kenneth Judd
Stanford
Disagree
4
Bio/Vote History
The economy can always get worse but there is no reason for dollarization necessarily causing extra volatility.
Kaplan
Steven Kaplan
Chicago Booth
Disagree
3
Bio/Vote History
Kashyap
Anil Kashyap
Chicago Booth
Agree
5
Bio/Vote History
hard to see how they would not have a sharp contraction in activity if they could pull this off. It will be fascinating to see the machinations that the IMF goes through to claim to be repaid the 40 billion+ that it is owed.
Klenow
Pete Klenow
Stanford
Disagree
5
Bio/Vote History
Levin
Jonathan Levin
Stanford
Disagree
4
Bio/Vote History
Maskin
Eric Maskin
Harvard
No Opinion
Bio/Vote History
Nordhaus
William Nordhaus
Yale
Agree
3
Bio/Vote History
Obstfeld
Maurice Obstfeld
Berkeley
Uncertain
5
Bio/Vote History
Saez
Emmanuel Saez
Berkeley Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Agree
10
Bio/Vote History
Adopting the dollar will tie the Argentine economy to forces outside its influence and control. This may be better than the current hyperinflation, but it is a recipe for volatility.
Scheinkman
José Scheinkman
Columbia University
Uncertain
6
Bio/Vote History
Although dollarization probably generates stronger economic fluctuations than many alternative rules (inflation targeting, money growth rate rules, or devaluation rules), Argentina has been incapable of committing to reasonable monetary rules.
Schmalensee
Richard Schmalensee
MIT Did Not Answer Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Uncertain
3
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Disagree
7
Bio/Vote History
El Salvador and Ecuador have used the USD since 2000/2001 and I see no evidence of increased volatility there. Instead, poor monetary and fiscal policy in Argentina is the source of instability, and dollarization will help with that.
Stock
James Stock
Harvard Did Not Answer Bio/Vote History
Thaler
Richard Thaler
Chicago Booth
No Opinion
Bio/Vote History
Way above my pay grade.
Udry
Christopher Udry
Northwestern
No Opinion
Bio/Vote History