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Of course but once you have 3 digits inflation, what other way to reduce is there besides cutting the supply of money suddenly in a shock? People won't like it,
by luzojeda 2y ago
Of course but once you have 3 digits inflation, what other way to reduce is there besides cutting the supply of money suddenly in a shock? People won't like it, I didn't like it either but the two other presidents tried various methods such as price controls and that didn't help, on the contrary.
- meiraleal 2y agoThere are alternatives. Brazil fixed the hyperinflation problem in a different way, maybe Argentina should copy it: https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil https://www.npr.org/sections/money/2010/10/04/130329523/how-... previous discussion: https://news.ycombinator.com/item?id=9617710 https://news.ycombinator.com/item?id=9617710
- marcosdumay 2y agoBrazil pretty much did a monetary shock by reducing the money supply. Just like Milei. We did more stuff besides the shock. But we also had more inflation, and it was more persistent.
- marcosdumay 2y agoIf you have long-lasting inflation, you need some shock to cut it. But reducing the supply of money only does shock, it's keeping it constant over the long term that avoids inflation. And well, price control never works. This is well known. It's also well known that Argentina's last few presidents were people that wouldn't let patently known and unavoidable facts get in the way of their policies...