Brad wrote:
>> Michael Mussa says they don't work.
Well he's fucking wrong then, not to put too fine a point on it.
This isn't a question of macro-policy, or whatever. It's a matter of the difference between two situations:
1. I walk into a bank in Buenos Aires and say "I'd like to make a deposit to my savings account, a withdrawal from my current account and take out a loan please". The person behind the counter says "that might be a bit difficult, particularly the loan, but basically OK".
2. I walk into a bank in Buenos Aires and say "I'd like to make a deposit to my savings account, a withdrawal from my current account and take out a loan please". The person behind the counter says "This is a cheese shop; all the banks closed down six months ago".
Argentina is much more like 1. than 2. As a matter of observable fact, the banks are carrying on banking business. Any analysis of Argentina's problems which contains the step "and then the banking system collapsed" is based on at least one non-fact. The corralito is coming to an end, and the banking system is still there.
dd
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