My interventionist friends are touting this article as proof that government intervention is the best way to stimulate and maintain an economy: http://www.nytimes.com/2011/09/02/opinion/argentinas-turnaround-tango.html?_r=1&scp=1&sq=argentina%27s%20turnaround&st=cse To my knowledge, this is NOT a …

“It is a classic ABCT. I just posted an answer to it here .” I would beg to differ. I do not see any evidence of central bank intervention, only government intervention. ABCT suggests that " business cycles (or, as some Austrians prefer, “ credit cycles ”) as the inevitable consequence of excessive gr…

The article does cite monetary factors. “Inflation is a result of companies being unable to meet consumer demand and should be resolved by boosting loans for production, Mercedes Marco del Pont, the current central bank president, says. She plans to increase the money supply by 28 percent this year…

Yes the article does cite monetary factors, BUT, that is for future actions, not the past actions which (allegedly) yielded the growth (tax + spend by the government.) The increase in money supply is to (allegedly accomodate) economic growth of the past. I am saying that, as the article suggest, gr…

You call “growth” a 9% nominal GDP increase under 20%+ inflation and 20%+ increase in money supply? Both money supply and inflation have been high for a while there. It was the central bank president that was quoted in the article about her having to keep increasing the money supply in order to supp…

Keynes was an advocate of fiscal policy, i.e. government spending, NOT monetary policy, i.e. monteary inflation. In fact, iirc, he stated that monetary policy would be ineffective to stimulate the economy. Monetary policy is more akin to the Chicago School and Post-Keynesians, but not Keynesian in…

Assuming it was both an increase in money supply and an increase government spending (as is usually the case), then it’s both textbook Keynesian crap and textbook ABCT.

Fiscal Policy alone is textbook Keynesian. Monetary Policy alone is textbook Chicago. Monetary Policy + Fiscal Policy together is not texbook Keynesian.

The very monetary/fiscal dichotomy is Keynesian crap in its own right. But, anyhow… Wikipedia on Keynesian Economics : “Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the public secto…

I am quite ignorant of the matter, yet I may hopefully throw some ideas out there that someone can develop some more: Argentina pegged its currency on the US dollar, essentially a type of monetary policy. “defaulted on its debt” - a) No more payments to other countries. The problem is it also …

Argentina’s Turnaround Tango

Economics Economics Questions

z1235 September 3, 2011, 12:47pm 2

It is a classic ABCT. I just posted an answer to it here.

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Argentina’s Turnaround Tango

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