Brilliant post at Calafia Beach Pundit on economic crimes recidivist Argentina and their current attempts to fiddle CPI (for which they are on track to get thrown out of the IMF for, if they are not careful) and price controls.
"The chart above shows the allegedly manipulated CPI statistics. Note how year over year inflation has been suspiciously flat around 10% per year since early 2007, when the government puts its own man in charge of the statistics office. For the past 36 months, year over year inflation has been almost exactly 10% every single month—something that is nearly impossible in the real world.
The chart above almost surely does not show manipulated data for currency in circulation. For the past 36 months currency in circulation has grown almost 40% per year. It is virtually impossible for currency to grow 40% a year at the same time inflation is only 10% per year. The M2 measure of Argentina's money supply is also growing at breakneck speed, averaging about 32% a year for the past three years. The growth of currency and M2 points strongly to inflation being 25-30% per year, as most independent economists suggest it is."
"The chart above shows the allegedly manipulated CPI statistics. Note how year over year inflation has been suspiciously flat around 10% per year since early 2007, when the government puts its own man in charge of the statistics office. For the past 36 months, year over year inflation has been almost exactly 10% every single month—something that is nearly impossible in the real world.
The chart above almost surely does not show manipulated data for currency in circulation. For the past 36 months currency in circulation has grown almost 40% per year. It is virtually impossible for currency to grow 40% a year at the same time inflation is only 10% per year. The M2 measure of Argentina's money supply is also growing at breakneck speed, averaging about 32% a year for the past three years. The growth of currency and M2 points strongly to inflation being 25-30% per year, as most independent economists suggest it is."
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