Uruguay is a lot more stable economically, but in terms of cost of living it is the most expensive Latam country by far. Also to move there it depends a bit on your goals; if you like the outdoors and quietness, then it can be a great option (many retirees move to Uruguay), if you want more action / things to do, then Argentina would be a better option. Many younger Uruguayans leave because there's not enough jobs to fill, and there's a pretty big Uruguayan community in Buenos Aires as well. The other way around is also the case, around 50% of private wealth parked in Uruguay is Argentine.
I don't think Gresham's Law applies here. This law only holds if there are price controls in effect -- if the exchange ratios of different monies are fixed and no longer reflect market forces. If Argentina is accepting both currencies but not fixing them relative to each other, there is no reason why the more stable currency should disappear. Right?
Disappear in the sense of savings, historically that has been the case even when there were no price controls in Argentina, dollars were always used for savings and more scarce vs pesos. Perhaps the 1990s being the only exception because the peso was pegged to the dollar.
Thanks for the Milei update. How would you compare Argentina to Uruguay?
Thanks! For retirement tranquilo, looking at www.gaudiumolivegrove.com.
Uruguay is a lot more stable economically, but in terms of cost of living it is the most expensive Latam country by far. Also to move there it depends a bit on your goals; if you like the outdoors and quietness, then it can be a great option (many retirees move to Uruguay), if you want more action / things to do, then Argentina would be a better option. Many younger Uruguayans leave because there's not enough jobs to fill, and there's a pretty big Uruguayan community in Buenos Aires as well. The other way around is also the case, around 50% of private wealth parked in Uruguay is Argentine.
I don't think Gresham's Law applies here. This law only holds if there are price controls in effect -- if the exchange ratios of different monies are fixed and no longer reflect market forces. If Argentina is accepting both currencies but not fixing them relative to each other, there is no reason why the more stable currency should disappear. Right?
Disappear in the sense of savings, historically that has been the case even when there were no price controls in Argentina, dollars were always used for savings and more scarce vs pesos. Perhaps the 1990s being the only exception because the peso was pegged to the dollar.