Season 1 · Episode 380
Does Argentina need a central bank?
Argentina’s President-Elect Javier Milei believes he can do away with the central bank. That might be a vote-winning response to staggeringly high interest rates, but does he understand all the work that central banks do?
Debunking Economics - the podcast · Steve Keen & Phil Dobbie
December 6, 202348m 39s
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Show Notes
In his election pledges President-Elect Javier Milei promised the people of Argentina two things. First, he would do dollarize the economy. He’d ditch the Peso and replace it with the, already widely used, UD dollar. Secondly, he would abandon the central bank, who he blames for the rampant inflation, which is one part of many fronts of destruction against the Argentinian economy. But can a country really do without a central bank, even if it is reliant on the currency of another country? This week Phil and Steve talk about the roles of central banks – everything from controlling inflation, to maintaining the stability of the banking sector. Could it all be managed by governments internally? Some of the work is deeply technical and people in governments don’t tend to be very good at anything that requires working with numbers.
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