Thursday, July 31, 2014

Neil Wilson — Don't bind your hands Argentina

Drop the peg and never, ever borrow in a foreign currency.

Don't bind your hands Argentina
Neil Wilson


Ryan Harris said...

It isn't painless and easy to get people to trust your local currency enough to use it when you have a long history of debasement. The cornerstone of MMT is the use of automatic stabilizers and proactive fiscal and tax policies that keep inflation from rising to a point that people don't want to hold the currency. And it attempts to maximize productive output by ensuring a fully utilized and employable labor force. Argentina has clamped down on their foreign currency practices in banking, which is good, but it hasn't always done a very good job maintaining output and labor usage.

David said...

Someone please advise President Fernandez de Kirchner to contact Mike Norman and Warren Mosler as soon as possible. Maybe sign her up for Mike's FOREX course.