tag:blogger.com,1999:blog-3889866049894996797.post2161239534055261462..comments2015-08-26T06:44:14.795-04:00Comments on Structurally Maladjusted: Argentina, where economic growth is a bad thingGringo Juanhttp://www.blogger.com/profile/03594747109071410552noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3889866049894996797.post-45266584829311687112010-07-04T18:34:32.372-04:002010-07-04T18:34:32.372-04:00but inflation in Argentina (real inflation, not th...but inflation in Argentina (real inflation, not the cooked numbers reported by the gov.) is really high, up around 21%... whereas the US is still staring deflation in the face. So stimulating Argentina by increasing public sector spending will just stoke inflation more, if you subscribe to a rather standard interpretation of monetary policy/inflation/fiscal stimulus. You might not (Cristina definitely doesn't) but that doesn't mean RBS is being inconsistent. <br /><br />Also, I would hardly call RBS mainstream media, since they issued that report for investors, and investors aren't interested in politics, they're interested in making money. They don't care about what's popular or correct. As an example of this, I recently read a report (from Barclays, I think?) recommending investors buy PdVSA bonds, since their yield is incredible and it's highly unlikely the Venezuelan oil company will default on its debt because it has so many seizable assets in the US. That's not a position you'll see media types in the US take (buy Venezuela!) but where there's money to be made...Unknownhttps://www.blogger.com/profile/07313722766711142247noreply@blogger.com