Argentina should ditch the peso in favor of a 'hard dollar regime' to get inflation under control, think tank says

• Argentina should adopt the US dollar to get inflation under control, the Cato Institute said.
• It would act like a "straitjacket" on the central bank and prevent it from issuing too much credit, researchers said.
• "This type of hard dollar regime is exactly what Argentina needs now." 

Argentina should abandon the peso and adopt the US dollar as its local currency to get inflation under control, according to the Cato Institute.

The libertarian-leaning think tank said the currency switch would serve as a "straitjacket" on the central bank's ability to enable profligate spending by Argentine lawmakers.