Argentina’s Latest Unorthodox Tool to Combat Inflation: AI

[MilHojas]

Argentina’s Latest Unorthodox Tool to Combat Inflation: AI

Argentina, which for decades had unsuccessfully tried to beat runaway inflation with unorthodox policies, has come up with a new tool to keep track of price increases: artificial intelligence.

www.bloomberg.com

Archived version

 

[zeno]

Combatting inflation by using gimmicks is like using fad diets to lose weight. In the end, you just need to reduce the consumption of calories, not go gluten free, paleo, keto, etc.

Similarly, the government has to stop printing money to artificially reduce its budget deficit. No amount of trickery can fix this issue. Fiscal discipline is the equivalent of reducing calorie consumption with all its pains.

 

[Rich One]

Combatting inflation by using gimmicks is like using fad diets to lose weight. In the end, you just need to reduce the consumption of calories, not go gluten free, paleo, keto, etc.

Similarly, the government has to stop printing money to artificially reduce its budget deficit. No amount of trickery can fix this issue. Fiscal discipline is the equivalent of reducing calorie consumption with all its pains.

Reducing the calorie intake is the equivalent of reducing printing. What's the equivalent of burning more calories ? Increasing the IVA ? Cutting subsidies?

 

[NoSoyDeAqui]

I find this very ironic. During the mid 00's, Alberto Cavallo initiated the "Billion Prices Project". Alberto was at MIT at the time, and yes he is the son of Domingo. As part of the project, they gathered online prices of many things, from rentals to bread, to hourly wages. The data allowed, among other things, to calculate inflation in "real time" or at least in periods shorter than the monthly reports from the likes of BLS in US and INDEC in Argentina.Their data was freely available online for the US (it tracked fine the BLS reports), Venezuela and Argentina. For the later case it clearly showed a much larger inflation rate than what INDEC was reporting. This attracted lots of heat from the argentine goverment, criticizing the methodology, Cavallo's ancestry, and of course that the whole thing emanated from the US. In those times, Sergio Massa was part of the goverment, most notably as Chief of Staff. Therefore, I consider him part of the INDEC lie. I find ironic that now he is using a similar methodology.

For more on Cavallo's work, see inflacionverdadera.com

 

[Traveler]

Reducing the calorie intake is the equivalent of reducing printing. What's the equivalent of burning more calories ? Increasing the IVA ? Cutting subsidies?

So many here are on a govt handout cutting it down will cause riots. PANEM Y CIRCUSES

 

[Quilombo]

So many here are on a govt handout cutting it down will cause riots. PANEM Y CIRCUSES

I still posit that it's possible to cut government spending without impacting the people who need help the most.

Selling off Aerolíneas Argentinas for one would save 500 million dollars, and we already have a state airline, LADE which could operate Essential Air Services similar to how USDOT subsidizes these with regional airlines.

We're not an oil rich gulf state, we can't afford a state airline, and this can be applied toany other boondoggles we have without telling the poorest Argentines to eat cake.

 

[Traveler]

I still posit that it's possible to cut government spending without impacting the people who need help the most.

Selling off Aerolíneas Argentinas for one would save 500 million dollars, and we already have a state airline, LADE which could operate Essential Air Services similar to how USDOT subsidizes these with regional airlines.

We're not an oil rich gulf state, we can't afford a state airline, and this can be applied toany other boondoggles we have without telling the poorest Argentines to eat cake.

That's a bucket of sand out of the Sahara. I see so many people here in BS AS who get money from the govt. And that includes kids in school getting 5000 pesos a month for going to school. Yes, I know that's about $15 US dollars but it sets up an entitlement attitude.

 

[elhombresinnombre]

.... And that includes kids in school getting 5000 pesos a month for going to school. Yes, I know that's about $15 US dollars but it sets up an entitlement attitude.

And you know what happens when you have kids not going to school? Well, the US government does: that's why they set up FAFSA back in 1965. And the UK government does also, which is why they set up EMA in 1999

In this, the Argentine government is just following Western examples.

 

[Traveler]

And you know what happens when you have kids not going to school? Well, the US government does: that's why they set up FAFSA back in 1965. And the UK government does also, which is why they set up EMA in 1999

In this, the Argentine government is just following Western examples.

What other governments do is not germane to ALL the freebies the Argentine govt doles out. I'm not a fan of the U.S. and it's $31 TRILLION dollar debt but the US dollar is at least wanted by the rest of the world whereas the peso, isn't. Hence unsustainable inflation here. If the grass is greener in your neighbor's yard, re-do your garden if you want it to match instead of just hoping yours will turn greener. You surely must see poor families here with lots of kids. That's enabled by the free money from the government. What's even more pathetic is unions here demanding more money and then workers wondering why prices are rising! Then throw in the bonuses given to retirees who then find prices rising, too.

Politicians here and most everywhere pay lip service to voters promising to solve inflation but have you EVER met a poor pol? (Even in Ukraine their politicians, after receiving billions in aid from the US, voted themselves a huge raise).



I'm convinced the financial situation not just in Argentina won't end well with all the money printing.

 

[sts7049]

And you know what happens when you have kids not going to school? Well, the US government does: that's why they set up FAFSA back in 1965. And the UK government does also, which is why they set up EMA in 1999

In this, the Argentine government is just following Western examples.

FAFSA has criteria and is not automatically given to everyone