[from Tim Worstall @ Forbes, 11 July 2011]
Hmm. So the general thought is that the government is being, umm, less than open perhaps about the real inflation rate. So someone tapping on a calculator and exposing that is unwelcome. Well, yes, but really, bringing down the weight of the law on people who simply disagree with government over the numbers? A bit harsh really, so again, why are they doing this?
About a quarter of Argentina’s debt is indexed to inflation.
Aha!
The official rate is just under 10%, which is the rate that the bondholders get. The real rate….no, sorry, the rate calculated by those private sector economists which of course may or may not be correct….is over 20%.
This argument over the numbers is worth real money then: possibly worth a bit of oppression of private sector economists in the eyes of the Argentine Government.
