Argentina's New Approach To Central Banking

Oct 2010
22,674
5,689
In the empty heads of the right wingers I own
#1
The Shots Heard Round the World: Argentina's Radical Banking Reforms

Argentina is going to try a new way to run their central bank. I'm not sure about taking away the independence of central banks from the populist shifts of legislative and executive political office holders is best, but the triple mandate of monetary and financial stability and economic developement. Remember, just a decade ago, the MSM pushed the conservative line that all was lost in Argentina because if the sovereign default, when in fact Argentina saw solid growth afterwards - more than it had following the advice of the IMF and World Bank (Washington Consensus) policies. We'll see what happens, but I think that the MSM will likely call it a failure even if Argentina sees economic growth and stability.
 
Likes: Tedminator
#4
New Keynesian, probably. Not neo-Keynesian.
Ah my bad, I meant to say new instead of Neo. What issues do you take with post-Keynesian/MMT? From what the posts I've read, it seems you would be closer to the MMT/post side of the spectrum than to the New Keynesian side.
 
Oct 2010
22,674
5,689
In the empty heads of the right wingers I own
#5
Ah my bad, I meant to say new instead of Neo. What issues do you take with post-Keynesian/MMT? From what the posts I've read, it seems you would be closer to the MMT/post side of the spectrum than to the New Keynesian side.
First thing... I'm not an economist. second, We watched the Minsky Moment unravel before our very eyes just 5 years ago in the private sector. There's a lot to be learned from it, though i'm not sure some of the ideas of unlimited Federal debt being offset by continual QE or twisting is going to work forever that some of the MMT people seem to think is OK. I think that financial oblivion could happen. Where the point is that government debt gets too high... no one knows, because it's only theory.
 

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