Dollar & peso: 2010 forecast

[gouchobob]

Economics 101 does not pertain to Argentina.
Argentina operates independently from any and all known models. With inconsistencies and conflicting modes at 7 to 10 levels. It is a conundrum with it's own dedicated program of of study at Yale, Harvard and Princeton. [maybe Oxford also]

Can't say I agree with this. The problem here is political not economic. 100 years of bad decisions by bad governments is the problem and not some defect in econ 101.

 

[gouchobob]

Economics 101, aka "Chicago Economics", it is past its time. It is unrealistic and... that's it. Mankiw books make good paperweights.

Well Chile is the textbook model for putting Chicago Economics into practice and it's been highly successful.

 

[dennisr]

Try using the "Big Mac Index" to get a feel for what the real world exchange rate is for the AR peso: purchasing power.

http://en.wikipedia.org/wiki/Big_Mac_Index

 

[marksoc]

Well Chile is the textbook model for putting Chicago Economics into practice and it's been highly successful

Chile never privatized its copper industry, and if it wants avoid self-destruction people will need to stop Piñera plans about it.

Succesful for whom? Inequality in Chile seems to be higher than Argentine's

 

[Denver]

Succesful for whom? Inequality in Chile seems to be higher than Argentine's

Please explain the rationale that guides your desire for everyone to 'have' the same amount of resources.

Do you A): Believe every able-bodied person contributes the same amount to society and therefore deserves to enjoy the same amount if its fruits,

or do you B): Believe that not every able-bodied person contributes the same amount to society but they should still enjoy the same amount of collective fruits as those who work hard?

Neil

 

[gouchobob]

Chile never privatized its copper industry, and if it wants avoid self-destruction people will need to stop Piñera plans about it.

Succesful for whom? Inequality in Chile seems to be higher than Argentine's

Interesting comments, here are some more regarding Chile.

http://en.wikipedia.org/wiki/Miracle_of_Chile

One of the interesting stats mentioned is the following:

The economic policies, maintained consistently since the 1980s, have contributed to steady growth and reduced poverty rates by over half.[11][14] Only 14% percent of the population lives below the poverty line.

My guess without much doubt of being refuted is that the people of Argentina are worse off than in 1980 and that more live in poverty than then.

 

[SaraSara]

There was a piece in La Nacion two days ago. Compared to what it was in 2001, the dollar's real rate (in terms of purchasing power) is now only $1.41 pesos, not the $3.89 official exchange rate. The rest has been eaten by inflation. No wonder BA feels expensive.

Here's the link, for Spanish-speaking masochists:

http://www.lanacion.com.ar/nota.asp?nota_id=1255769

 

[Michael_CA]

There was a piece in La Nacion two days ago. Compared to what it was in 2001, the dollar's real rate (in terms of purchasing power) is now only $1.41 pesos, not the $3.89 official exchange rate. The rest has been eaten by inflation. No wonder BA feels expensive.

Here's the link, for Spanish-speaking masochists:

http://www.lanacion.com.ar/nota.asp?nota_id=1255769

I don't understand why the government is still having such problems. We have been doing case studies on Latin America, and we've learned the kinds of things that the Arg gov should be doing to work its way out of inflation, and yet it just seems to make the opposite decisions and make things worse for itself. Will it ever learn? Unfortunately 50 years of economic mismanagement seem to say no.

 

[blackburn]

no nothing about the dollar or econmics but if you can trust the bank(not for Argentines of course)you can get about 10% in a plazo fijo so you loose only 10 to 20% on your money whatever the "cost of living index is".?...in Uk the "coli" or inflation is about 3.4% and the savinigs rate is maybe 1% so relatively speaking it is the same loss of capital.....I think....so why not just spend your dosh as fast as you can....
invest in some large sacks of lentils....eh Sara?dos.....suerte all

 

[blackburn]

the Idian restaurants call it dahl.....lentil soup/stew.....gives it a bit an exotic title