Friday, February 4, 2011

Argentina Cracks Down on Firms with High Inflation Estimates

Private economic consulting firms and think tanks in Argentina have received an ultimatum from the office of Commerce Secretary Guillermo Moreno to explain their methodologies for estimating inflation, risking a fine if they don’t comply, according to Roubini Global Economics.

Pretty banana republic behavior, wouldn't you say?

I ask, is this much different from a House subcommittee asking Meredith Whitney to testify before the subcommittee and for her to bring along her work product?

1 comment:

  1. I suspect the answer will be "we take a set basket of products, and follow their price development, without re-weighting, hedonics or substitution".

    I suspect the Commerce Secretary will there-after issue a statement saying that such simplistic models do not track cost-of-living, and this proves that the government numbers are right.

    The good thing is, I suspect they will have a hard time shutting down the Billion Prices Project @ MIT, without shutting off the internet completely in Argentina. Of course, that's just fashionable these days.