How integrated are the Argentinean and American economies?
Not particularly. There’s a much better case for Canada. As an economic matter, it makes sense. I’m not sure it makes sense as a political matter. Currency is a very important symbol of sovereignty. And it seems to me a nation, if it’s going to stay a nation, needs as many symbols of sovereignty as it can possibly have. What are the implications of dollarization for U.S. monetary policy? A country like Argentina, trivial. Canada would be more serious. Now if you take my view of proper monetary policy, which is to get rid of the central bank and have a fixed rate of growth of high-powered money, then it doesn’t matter how many countries you have attached to it. The same thing would happen to all of them. But that’s not realistic. You’re going to have a central bank. Oh, really? Yeah, I’m afraid so! [Laughs.] And the central bank is going to exercise discretionary policy because bu-reaucrats want to be important. So you have to look not only at the reports from the 12 Federal Reserve dis