Unhedged Live from Kilkenomics: financial mistakes
9 snips
Nov 12, 2024 
Join financial historian Russell Napier, author of "Libraries of Mistakes," and Martín Lousteau, former economy minister and current senator from Buenos Aires, as they dive into the costly missteps of economic policies. They dissect Argentina’s ongoing financial turmoil, from rampant inflation to the tricky balance of relying on foreign currencies. The conversation turns to political anger affecting economics, and also considers global shifts that might reshape monetary systems. Expect insights layered with humor at the vibrant Kilkenomics festival!
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Argentina's Economic Experiment
- Argentina's president consults his dead dog for economic advice and favors Austrian school economics.
- He deviated from campaign promises like closing the central bank and dollarizing the economy, instead using inflation to cut spending.
Market Discipline vs. Financial Repression
- Markets discipline governments until governments abolish markets through financial repression, forcing citizens to buy bonds at desired yields.
- This trend is driven by societies unwilling to accept market consequences, especially regarding government bond yields.
Mandating Investments
- Governments can manipulate markets by mandating pension funds to invest in domestic assets.
- This tactic can be enforced through tax breaks or outright compulsion, similar to practices during wartime.