Argentine government hunts down inflation reporters. Protecting spending programs?

The Argentine government says inflation is 9.8%. Everyone else thinks it could be as high as 20%. President Cristina Fernandez has decided to hunt down those reporters who dare challenge official government statistics which have been reportedly manipulated to lower the government’s borrowing costs. This is definitely a story that makes you appreciate the freedom of the press…and remind you how important it is not to let politics influence the collection of important economic data.

For more details see: “Argentina targets news reporting of inflation data.”

Part of the government’s motivation may also be to protect profligate spending that is boosting the economy at least in nominal terms. For more on the aggressive spending programs launched by Fernandez see “Argentine economic plan: Raise spending, salaries.”

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