No one gives a toss that Argentina is lying about its inflation rate. Well, except maybe the economists they’ve fined and ruined for calculating the real one. We’ve all put up with Cuba lying about everything for 60 years after all.
Except, except … Argentina has issued index linked bonds as part of the 2001/2 debt restructuring. The interest paid depends on what the inflation rate is. If the government deliberately undercounts inflation then they get away with rooking the holders of those bonds.
That’s what this is about. That’s why anyone cares. It’s not simply that they’re liars it’s that they’re thieves.
Tim Worstall, “I wish people would get it right about Argentina”, Tim Worstall, 2012-12-17
December 17, 2012
QotD: Argentina’s little white interest rate lie
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