Monday, July 23, 2018

What is the Central Bank of Argentina Actually Doing?

Brief note in Spanish (no translation, sorry) on the long history of central banks and the current policies of the Argentinean central bank (BCRA). The gist of the argument is that while central banks where created to finance developmental states in the nascent merchant capitalist societies, in the periphery they tended to follow the Victorian model (implemented later) emphasizing inflation control as the main official goal. However, often, as in the recent case of the BCRA, they are used to accelerate inflation and fuel speculation, if that allows for lower real wages, which was Macri's administration not so hidden goal (from an old, but revealing interview).

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