Monetary crises in Argentina lead to widespread distrust in national currency
Money works best when people trust it, but when trust is lost, money stops functioning properly. This study looks at how trust in money is based on false beliefs about its value and how monetary crises in Argentina have led to distrust in the national currency. Despite attempts to regain trust through policies like inflation targeting, the lack of trust in the peso has led to the US dollar becoming more widely used. This cycle of distrust in money leads to chronic monetary crises.