Macro Poll: The Dollar's Up: Is This Good Or Bad?

[EdRooney]

After a couple of months of stagnation, the peso is finally starting to lose value against the dollar. Do you think this is a good thing or a bad thing? What are the advantages of a weak peso (e.g., more exports, more jobs)? Do they outweigh the disadvantages (e.g., imports get more expensive, lower return on fixed investments)?

As a side note, I know this affects us all personally in various ways depending on whether we earn/save in pesos or dollars, but I was hoping to focus this question more on the overall effects on the economy as a whole (with the caveat that we will inevitably end up talking about bittcoins and pizza as per usual).

 

[Chet]

I think it would be better to explore why it is moving, understanding that would mean a lot more than maybe I can buy another can of beans or not - today.

 

[Gringoboy]

Can't be good if you earn is pesos as we do.

 

[EdRooney]

Read the poll again Chet, it's specifically NOT about what we can buy today:

I know this affects us all personally in various ways depending on whether we earn/save in pesos or dollars, but I was hoping to focus this question more on the overall effects on the economy as a whole

 

[Chet]

Read the poll again Chet, it's specifically NOT about what we can buy today:

I was not questioning the poll, just that making any sort of judgement on change one needs some idea of why its happening. What else is going on that influences this makes a big difference, possible more difference in the state of things than the actual price. And of course things often being circular what else gets influenced by the change?
I don't know enough about Argentina government and politics yet to have a clue and was hoping people would add some thoughts.

 

[ARbound]

I'm a peso slave so it's bad on that front and the pay increase for inflation now means I'm close to my wages I had earned during the devaluation.

I now have higher dollar purchasing power but with it going up each day it doesn't last.

Like always anyone paid in ars is screwed

 

[Joe]

If the dollar is going up faster than inflation it's good for the tourists.

If the dollar is rising less than the average wage then it's good for the locals.

 

[Hybrid Ambassador]

ARbound, go to Japan. Now with 2020 Olympics in sight, many,many jobs available. The J~governmnt is seeking foreign workers of any kind for a diff field. Most easy jobs are in construction: 6.7 jobs available per applicants! If any one here is a commercial air line pilot
then the job isvery easy and ig reward as starting bonuses etc. The LCC airliner has emptied the available pilots ! Also for topograpy technicians the bounty is uch btter !

 

[thorsten]

I wouldn't call it good or bad, but necessary. The interventions of the national bank lead to a skewed exchange rate, which in turn leads to skewed allocations. Just reducing the interventions won't improve the economic outlook though...

 

[lucha54]

Harvest is over. Just in time for my bi-annual rent increase. The inflation beast strikes again.