by Lee Adler
Wall Street Examiner
Greg Ip knows just enough economic conventional wisdom to be a masterful and well respected word soup chef. Today he took on an explanation of why Argentina could “create” inflation via money printing, and the Fed, ECB, and BoJ couldn’t.
He said that it was because Argentina’s central bank bought government debt directly, and the major central banks didn’t. Apparently buying government debt indirectly via third parties somehow insulates economies from having inflation. He explained it, and his bobblehead Wall Street Journal readers and fellow media word soup practitioners all shook their heads in agreement, even though they didn’t understand a word of it.