Tuesday, November 6, 2012

A Party For The Worlds Worst Central Banker

Randall Wray attended a conference in Argentina for central bankers, academics and others interested in monetary policy.  The central banker from Argentina had just been voted the worst central banker in the world by the Wall Street Journal.  She was very proud of that honor.  Randall Wray felt the same way.  Anyone who the WSJ dislikes must be doing something right.  Her major sin is that Argentina has a high inflation rate.  Many believe that the single most important goal of the central bank is to contain inflation.  The Argentine central bank worries about more than inflation.  She is also concerned about employment and equity.  Its no wonder that she attracted attention from the WSJ and from the IMF.

Randal Wray's account of the meeting is interesting and humorous.  He also explains the causes of inflation in Argentina and he does not seem to be concerned about its durability.  He would nominate the Argentine central banker for Bernanke's replacement.

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