I forgot to mention in yesterday’s post that Argentina actually moved from a politically controlled central bank to a very independent one in the 1990’s, and did very well.
But … it’s a popular opinion when the economy goes bad to blame bankers because … well … um … because a lot of people hold to the childish belief that bankers are always bad guys.
So, one of the first things that Argentina did early this century was to repoliticize it’s central bank. Their economy was already down, so this probably didn’t make things worse. But, it does make the ultimate recovery harder. We’re seeing that now.