Daniel Lacalle/5-22-2022
“No, inflation in Argentina is not multi-causal, it only has one cause: an extractive and confiscatory monetary policy. Printing pesos without control and without demand. Argentina balloons its monetary base to finance excessive, inflated, and destructive public spending.”
USAGOLD note: Argentina offers an on-going, real life template, says Lacalle, for what happens when authorities cling to the belief that “massive” money printing does not cause inflation, i.e., that it has some other controllable origin. Inevitably, the currency and gold react.
