Argentina292010wsj

Argentina292010wsj - O'Grady: Argentina Seizes the Central...

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See a sample reprint in PDF format. Order a reprint of this article now Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com OPINION: THE AMERICAS FEBRUARY 8, 2010 By MARY ANASTASIA O'GRADY Argentina Seizes the Central Bank President Cristina Kirchner wants to pay foreign creditors but doesn't want to use treasury revenues. After a month of wrangling, Argentine President Cristina Kirchner succeeded in sacking central bank President Martin Redrado last week. In his place she named Mercedes Marcó del Pont, a Yale-trained economist who has expressed the view that central bank autonomy ought to be limited. The opposition howled at the news. Felipe Sola, former governor of Provincia de Buenos Aires, warned that the new bank president "is going to do what the executive decides and they are going to modify the bank charter to justify her doing what the executive tells her." Of course that would seem to be the point. Mr. Redrado was fired because he refused to turn over $6.6 billion in bank reserves to Mrs. Kirchner, who wants to pay foreign creditors but doesn't want to use treasury revenues. Ms. Marcó del Pont, if she wants to keep her job, will follow the orders of the president. Mrs. Kirchner is not the first politician to covet the wealth available from the monetary authority. Closer to home,
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This note was uploaded on 05/22/2010 for the course ECON 110D taught by Professor Schmitt-grohe during the Spring '08 term at Duke.

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Argentina292010wsj - O'Grady: Argentina Seizes the Central...

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