Monday, 19 September 2011
The Argentine Model
Here's a little something Francisco Javier Díaz and I have written on the Argentine model. We are not the first to notice the similarities with what is happening in the US, Greece, and elsewhere. Our point is not that others should do exactly what Argentina did, but rather, that what the Argentine case shows is that business as usual doesn't work, and usually just deepens the crisis. The only actor who can get a grip on what is going on is the state. The idea that this crisis was caused but too much spending is just wrong. It was triggered by a mortgage crisis which resulted in a banking crisis which turned into a crisis of confidence. The rest, as Hillel said, is commentary.