The word “chaos” has been the buzzword this week in Washington, largely directed toward Rep. Matt Gaetz’s successful coup against former Speaker of the House Kevin McCarthy and the resulting void in Republican leadership. In an era where most outcomes in Washington are predictable, best illustrated by yet another kick-the-can-down-the-road continuing resolution on spending passed the preceding weekend, the first successful use of a motion to vacate the speakership in American history greatly shocked the system.

Argentinian presidential candidate Javier Milei—who could actually win in the general election later this month—has become famous for his fiery speeches and his libertarian views from central banking to government spending. Milei’s proposed policies—if he’s able to actually implement them—would do much to help the Argentinian economy recover from decades of malaise caused by runaway government spending and monetary inflation. Among Milei’s positions, however, is his call for the dollarization of the Argentinian economy.

The Federal Reserve creates and manipulates the dominant fiat currency of the world. It produces the inflation of its supply and the continuous depreciation of its purchasing power. It manipulates dollar interest rates and the cost of debt, makes elastic the availability of credit (especially during financial crises), finances the government, and monetizes federal deficits in amounts limited only by the statutory debt ceiling. It is often imagined to be “managing the economy,” although, in fact, no one can successfully do that.

[This article appeared in the Letters section of The Wall Street Journal in a shortened form.]