Argentina’s money supply adjusted for inflation climbed 22.6% in last 12 months
A benchmark measure of Argentina's money supply rose 34.6% on the year in August, according to the central bank. In its monthly monetary report published late Thursday, the Central Bank of Argentina said its M2 measure of money supply averaged 403.93 billion Argentine pesos (86.6 billion dollars) last month.
Adjusted for inflation, the money supply rose 22.6% from August 2011, according to the bank. M2 increased 1.2% in nominal terms from July.
The central bank's target for M2 expansion this year is 26.4%, following a 29% increase in 2011.
Many private-sector economists warn that increasing the money supply so much is stoking inflation. But government officials reject this notion, saying that inflation is unrelated to the money supply or monetary policy in general.
Instead, the officials say, production capacity constraints and greedy businessmen are responsible for rising consumer prices.
Government data put annual inflation at about 10% but most economists say that the real rate is closer to 25% and that it won't budge a great deal without substantial changes to monetary policy.