One Argentine province introduced its own quasi-currency in a radical bid to save its economy from the consequences of President Javier Milei’s “shock therapy.” Milei’s plan to tame national inflation stopped monthly cash transfers to provinces, pulling La Rioja’s public sector-dominated economy into a recession. In July, its governor created the chacho — named after a legendary local revolutionary — to pay state workers, and it is now also used in select shops. But it has its limitations, Bloomberg reported: The distribution system crashed last month, and consumers are spending their chachos quickly in case it goes the way of previous failed local currency experiments. “This is just a band-aid… It doesn’t solve the problem,” said a local business chamber leader. |