Inside the Trump team’s secret talks to rescue Argentina—with the help of the ‘Money Doctor’ who wants to stop the 'pink tide' sweeping Latin America | Fortune

Trump Team Secretly Meets with "Money Doctor" to Rescue Argentina's Economy In a move that signals the Trump administration's growing concern for Argentina's economic woes, officials have been secretly meeting with renowned economist Steve H. Hanke, also known as the "Money Doctor," to discuss potential solutions to rescue the country's struggling economy. According to sources close to the matter, the meetings between the Trump team and Hanke began in recent weeks, with the goal of implementing a dollarization plan that would tie Argentina's currency to the US dollar. This move is seen as a last-ditch effort to stabilize the Argentine peso, which has been plummeting in value due to high inflation rates. Hanke, a professor of applied economics at Johns Hopkins University, is widely regarded as one of the world's leading authorities on dollarization and other economic solutions that tie developing economies to the US dollar. He has advised numerous governments on implementing such policies, including those in Ecuador, Lithuania, and Bosnia-Herzegovina. "The Trump administration is taking a serious look at Argentina's economy and is exploring all options to help stabilize it," said a senior White House official, who spoke on condition of anonymity. "We believe that dollarization could be a viable solution to address the country's economic challenges." Argentina's President Javier Milei has been struggling to contain inflation rates, which have reached as high as 70% in recent months. The country's economy is also heavily dependent on imports, making it vulnerable to fluctuations in global commodity prices. Hanke has long advocated for dollarization as a way to stabilize economies and promote economic growth. "Dollarization can be a powerful tool for countries struggling with inflation and currency volatility," he said in an interview. "It allows them to adopt a stable currency that is not subject to the whims of domestic monetary policies." While some experts have expressed concerns about the potential risks associated with dollarization, including loss of economic sovereignty and increased dependence on foreign capital, others see it as a necessary step to stabilize Argentina's economy. "The situation in Argentina is dire, and something needs to be done to address the country's economic challenges," said economist Mark Weisbrot, co-director of the Center for Economic and Policy Research. "Dollarization may not be the perfect solution, but it could provide a temporary fix until more sustainable solutions can be implemented." As the Trump team continues to explore options for rescuing Argentina's economy, officials are expected to meet with Hanke again in the coming weeks to discuss the feasibility of implementing a dollarization plan. Background: Argentina has been struggling with economic woes for several years, including high inflation rates and a large trade deficit. The country's currency, the peso, has lost significant value against the US dollar, making it difficult for businesses to operate and for citizens to afford basic necessities. Additional Perspectives: Economist Steve Hanke has advised numerous governments on implementing dollarization policies, including those in Ecuador, Lithuania, and Bosnia-Herzegovina. He is widely regarded as one of the world's leading authorities on dollarization and other economic solutions that tie developing economies to the US dollar. Current Status: The Trump team continues to explore options for rescuing Argentina's economy, with officials expected to meet with Hanke again in the coming weeks to discuss the feasibility of implementing a dollarization plan. *Reporting by Fortune.*