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Larry Moss wrote: 
 
<< The basic pattern is well-known to economists. The inflationary process 
proceeds always in a political context with parties and interest groups who 
may understand the redistributive effects of inflation and still hope to 
gain wealth or status by supporting the process. One dimension of the 
revolution on modern economic thought especially surrounding the public 
choice school has been to emphasize this political process. In Argentina's 
case the story that needs to be told would be less about a maverick central 
bankers extending credit and more about a government trying to provide 
social programs to stay in power. << 
 
In the traditional literature, some Austrians have touched upon this 
important process and, to some extent, the politics behind new money.  Both 
Hayek and Von Mises, for example, have discussed the uneven and stepwise 
nature of the inflation process and have, to a very limited extent, touched 
upon the politics behind new money. Unfortunately, most eminent QTM 
[Quantity Theory of Money] proponents, such as Irving Fisher, have really 
preferred to focused mostly on what would constitute the structure of a 
comprehensive price level and how could it best be measured and have mostly 
ignored the political and institutional aspects which precede the creation 
of new money.  It should be noted that Fisher, however, in his PPM 
[Purchasing Power of Money, 1911], did outline the asymmetrical nature of 
the adjustment in interest rates to new money and how this part of the 
process contributes to swings in the business "cycle."  And, also Robertson 
in his discussions on forced saving, touched upon the stepwise process of 
new money and inflation, but again, like Fisher, had no interest in really 
going ahead of the process to explore the political culture around new 
money.  
  
Laurence's last sentence above, I think, really encapsulates the 
contemporary political climate surrounding the call for the new 
"Argentino."  There has been no mention in the press about how the 
Argentinoes will get into circulation. It seems the government prefers it 
to be a mystery. 
 
Chas 
 
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