7 ms·
The common officialist argument, for whatever it's worth, is that publishing the real values would induce panic and further inflation. Basically, they claim tha
by Fargren 15y ago
The common officialist argument, for whatever it's worth, is that publishing the real values would induce panic and further inflation. Basically, they claim that it would be irresponsible to disclose the real values.
- mc32 15y agoBut don't they realize that then this gets baked-in in people's expectations. I.e. when they say 5% people know to adjust accordingly and think, oh 10%, and so on. Short term this might work, but long-term (year or more) it becomes useless.
- tatsuke95 15y agoMuch of modern macroeconomics revolves around the theory of expectations. http://en.wikipedia.org/wiki/Rational_expectations http://en.wikipedia.org/wiki/Rational_expectations So, one way to diminish the crippling effects of inflation is to lie and say there is none. Of course, as you say, in the long run you'll get hammered, as people's expectations fly out of whack and they are required to guestimate future rates of inflation.
- wisty 15y agoAccording to modern macroeconomics, people are omniscient, and will see past fake statistics. Also, recessions can't be predicted, because everyone is smart enough to prevent them.
- adrianscott 15y ago"People are omniscient" -- one of several false assumptions that lead to unrealistic results from the theories (and disaster/losses to banks/investors/govt's who base their actions on them)
- erichocean 15y agoHe was being sarcastic.
- loboman 15y agoThe argument I heard is that if they publish these ridiculous values, they get to pay a much smaller amount of debt. I don't know if this is true, but many people claim this is a good reason for lying in the INDEC. (I think this is the worst reason, if true; because then this is a world-wide con)
- roderik 15y agoThere is some titles tied to inflation iirc
- marianoguerra 15y agoa really interesting solution was brazil's real. http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake-money-saved-brazil http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake... http://en.wikipedia.org/wiki/Plano_Real http://en.wikipedia.org/wiki/Plano_Real