Would You want to See a Corralón Type Economic Measure in Your Country?

[alastantiger]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

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[Faisal2202]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

That is something new to me, I was not aware of it, I mean, that's a trap from banks, why would they do it, and why did the people of Argentina bore it, why did they not protest, why it still implemented after protests? This really sucks. I mean, they even set the withdrawal limit to $250 per week. Useless policies for the customers but not for the banks. Where did the profit go? Which they made out of this.

I believe this is the 2nd best example I have found to teach someone or give an example of why BTC is better than Banks, in terms of holding. Like, those if they were had holdings in BTC, would be saved now, but they trusted banks and banks fucked them. (sorry for the lingu).

We don't have the facility to store dollars in Banks, even if we have, (of which I am not aware of), I don't think if anyone would care to save their dollars in the local or national banks. People prefer to hold them in person, and recently in an operation more than 900 million dollars were caught, which was not in the books of our governments, which means they were smuggled into the country without paying tax.

[kryptqnick]

I've read the article, but it's really short, and I couldn't find much beside it online to deepen my understanding of the matter. I haven't heard of this before, but I don't have debt, so I don't think I'd benefit from such a measure. What I find lacking from the article is the information about broad effects of the measure. Did that help stabilize the national currency, did that contribute to improvement of any economical features? Is it, in hindsight, considered a mistake or an effective move? Who lost the most from this practice, and what was it meant to achieve in the first place?

[Aanuoluwatofunmi]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

What is wrong with the normal exchange rate that we are using with the conversion os our local currency with the USD, it makes nothing different and a country like mine may not as well like to give adoption for this kind of economy exchange, this may be a perfect way of running the economy in Argentina by it's law makers but other countries also have their own way of making their economy a stable one without following same pattern others take, so in my country, this is not going to be an acceptable one when they are trying to work on balancing the economy.

[Tytanowy Janusz]

One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

Short term they didn't. they've lost almost 30% because normal deposits were exchanged at a rate of 1.4 and debt at 1. They only made a "profit" in the long term, because this drastic measure did not help the peso.

What do I think about this? This is nothing new. When the mark collapsed in the Weimar Republic (Germany after WW1), citizens were forced to use the local currency to such an extent that the police went to pubs and looked into people's wallets to check whether they only had marks. Foreign currencies were confiscated. And both in the Weimar Republic and in Argentina, such efforts did not achieve anything, because it is impossible to force people to use and take seriously a currency that loses most of its value within one year.

[DrBeer]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

Perhaps one of the most idiotic ideas to "save the economy" is to take away people's PERSONAL savings in the currency that stabilized the economy....
Instead of a thousand words, history and facts:
In the early 1990s, the government pegged the national currency to the U.S. dollar, which kept inflation in check. Many state-owned enterprises were transferred to private ownership, and privatization proceeds were partially used to pay off the national debt.

And then began experiments, which, although they gave temporary relief, because a huge amount of private funds was withdrawn, and they were able to temporarily "plug the hole in the budget", but it did not solve the essence of the problem, and now we see what we see.... Private property - be it savings, cars, real estate, or other - is INCREDIBLE! This is what the entire Western, developed world is built on. Yes, there are exceptions - illegally or criminally earned assets, but this is a separate topic

[Yamane_Keto]

I have not heard of Corralón, and I will read about it later to learn more, but copying and pasting or repeating economic solutions will not lead to good results. Every country has a unique economy and economic problems, and repeating the appropriate solution does not mean that it is the appropriate solution for all countries or similar situations.

The world is changing rapidly, and the solutions must differ accordingly. I do not think that my country will repeat the same solutions, but the economic crises have become much deeper, which makes the cost of fighting hyperinflation and taking any solutions to them a priority, no matter how harsh.

[Natsuu]

 I think a lot of us would be seriously frustrated in our country . Imagine waking up one day and finding out a big chunk of your savings isn't worth as much anymore. People would definitely be talking about it everywhere – in coffee shops, at family dinners, and all over social media. It would be a major topic of conversation, and many of us would be pretty worried about what the future holds financially.
I also doubt that the capitalists in our country will allow this to happen haha capitalists and big investors wouldn't be happy at all if something like this happened. They would probably do everything they could to stop it like talking to politicians using their influence and maybe even moving their money elsewhere if things got really bad.

[CarnagexD]

I have not heard of Corralón, and I will read about it later to learn more, but copying and pasting or repeating economic solutions will not lead to good results. Every country has a unique economy and economic problems, and repeating the appropriate solution does not mean that it is the appropriate solution for all countries or similar situations.

The world is changing rapidly, and the solutions must differ accordingly. I do not think that my country will repeat the same solutions, but the economic crises have become much deeper, which makes the cost of fighting hyperinflation and taking any solutions to them a priority, no matter how harsh.

This is the first time I heard about Corralón too. And I doubt that it will work in our country. It would be normal for people to react and feel scared especially if it is something new.  But I think it is unfair that those in debt will benefit. Being in debt during hard times is still super stressful. Job uncertainty and financial instability make it tough, even with these potential benefits. So while there might be a few silver linings the struggle is definitely still real for them.

[davis196]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

Nobody would want to see such type of economic measures in his country. The government basically tries to steal the stable currency from the people and gives them shitty national currency in return. This is done only for the sake stabilizing the national currency, which totally failed and the people's savings in Argentinian pesos were destroyed by inflation. This is government theft and it will ruin the economy of any country. I don't know what's wrong with the politicians in Argentina. Most of them don't understand basic stuff about economics and finance and most of them support stupid experiments with the economy.

[knowngunman]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

I don't think this will go well with present economy that almost every nation is struggling. Even in the Argentina, the Corralón era was actually a difficult time for many people in Argentina. The forced conversion of dollar deposits and debts into local currency at an unfavorable rate left many people feeling like they had lost their savings. The bank run and economic turmoil caused a lot of stress and hardship. The Corralón had some negative consequences for Argentina including a rise in inflation and economic instability. It's hard to say for sure what the consequences would be if my government implemented a similar policy but there's no doubt that it could potentially lead to similar economic problems. I think it's better to consider all of the potential impacts before implementing any major policy changes like that of Argentina.

[hyudien]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

Limited sources mean that I can't fully understand Corralón. But in simple terms, if we look at Argentina's economic growth, has it experienced a good cycle and been able to overcome economic problems in the long term? If not, it means that there are still many things that are not suitable to be implemented, because if one method is not correlated with the financial condition of the country, especially the economic markets of developing countries, in which case the sources of income are diverse, it will make implementation difficult.

Because this is being implemented in Argentina, it means we will make a concrete example of the country's economic conditions 20 years ago. And based on my search, the results were quite surprising, especially after the Covid-19 pandemic, when high inflation was hit by global economic turmoil, Russia's invasion of Ukraine.

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Are there any other advantages to this type of economic measure aside from stabilization and its benefits to debtors? What about the savers? Its favorability and overall benefits should be considered.

For me, I wouldn't want to see this in our country, I think it's a bad idea. If the government were to implement something like this, I'm sure many, especially those in the middle class, would oppose it.

[el kaka22]

This type of thing "could" happen in poor nations but as long as you do not handle mismanagement of the taxes and the corruption then it doesn't mean anything. I would be 100% in support of this if it meant that everyone would be able to pay their debt, there is no more financial trouble in the nation for decades, and every tax cent is going back to the citizens for their benefit.

But, we all know that every single nation in the world taxes you, and then uses that money for something other than what should be spent, and mainly getting stolen by the politicians.

When that's the case, what good does this type of measure does? It just more money in the pockets of the politicians and nothing more, and I am sorry but I rather not make the politicians richer. Just because they wanted to steal our money and screwed the nations economy because of it, doesn't mean that we need to help them recover it neither, we could just ignore it all together if we want to.

[serveria.com]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

I wouldn't want to experience such measures in my country, although I suspect in Argentina they had to choose the lesser of two evils. Such unpopular measures are being used in extreme situations, like saving a country's economy from a default.

[Captain Corporate]

I don't think this is something people really "want" but more like something that happens to people. I am not saying that its not going to end up being good or bad because that's not the point of it, this is something that government does to its people, so its not really a choice matter. If they want to, they take your money and that's it and there is absolutely nothing you can do about it. It used to happen in our nation as well but for the last few decades it hasn't happened at all, no matter how worse the economy gets, government doesn't take out money. I believe this is not something anyone would want to ever see, they take your money, why would anyone want something like that?

[jrrsparkles]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

This will increase the financial equality difference further and again rich people will get richer cause they are the one who has more debts as well as more assets, they never have a huge amount of funds as cash so these kinds of economic policies will affect the middle-class people and can bring the chaotic situation to the demand and supply chain.

What I really want to see is an increase in corporate and direct taxes so rich people will pay more taxes while decreasing the taxes that apply on fuel, food supplies, and indirect taxes.

[South Park]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.
https://en.m.wikipedia.org/wiki/Corral%C3%B3n

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

This is just another example of a government trying to square a circle, when the fiat currency of a country gets weak they ban and confiscate foreign currencies to try to force the citizens to use their useless fiat in hopes of stabilizing their economy, but no person in their right mind will allow for their government to openly steal from them in this manner, and such measures are a clear sign an economic collapse is imminent at that country.

[Fortify]

Corralón was the informal name for the economic measures taken in Argentina at the beginning of 2002 by President Eduardo Duhalde during a bank run in which deposits and debt in dollars were exchanged to local currency at 1.4 per dollar for deposits and 1.0 for debt (this was also called pesificación asimétrica). Previously, the withdrawal of dollars was limited to $250 per week. After the forced exchanged, people no longer had any dollars on the system and those who had savings in US dollars lost 65% of their deposited value.

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

Just look at the economic situation of Argentina right now and you have your answer, it has not got better - in fact has arguably got worse - since this policy was enacted. Politicians are very fickle characters who often only have fairly short careers in the highest positions of government. They might rightly try to enact policies that seek to arrest the decline of a countries economy, but they often take the wrong choices because they can be guided by popular opinion which seeks an easy route out as opposed to a harder route which uses fact based evidence. The idea seems to have been to seize US dollars and force the local currency to be used as well, maybe entwined with a claim that US dollars have lost value - but the Argentine peso has done a lot worse in comparison, so it's misguided from that perception.

[ZAINmalik75]

What are your thoughts on the quote above if your government implemented such economic measures? One thing is certain: those in debt would likely benefit, especially in times of economic hardship.

If my government implements such rules, then most of the middle class and poor people will be doomed because they are the majority of people who use local banks to store their funds, whether the funds are small or not. The rich and upper-class people do not store their funds in local banks because they know local banks are only for making trades if they are making any deals, buying groceries, or when they need local currency.

Other than this, they try to hold their assets in deflationary things, which could provide a hedge against inflation. BTC is the first thing that came to mind in terms of a hedge against inflation, but those who don't prefer it go after gold or US dollars. So they don't have to be afraid of such acts.

To my knowledge, not a single act has been reported in my country till now. But let's just hope things don't go dirty like they did in Argentina. I read this topic a while ago but did not give my reply, so today I was replying to another topic where I could use this topic as a fact, so I searched it. And I came to know that I hadn't even posted my opinion here.