Uruguay’s central bank acts to contain inflation out of target for three years running

Thursday, March 7th 2013 - 00:46 UTC

Full article 5 comments

Uruguay's central bank announced on Wednesday it will raise marginal reserve requirements on local and foreign currency deposits from April 1 as part of its effort to bring inflation within the official target range, which has been missed in the last three years. Read full article

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ChrisR
Not at all sure this is the way to tackle the problem.

Trying to overcome the speculators has rebounded time and time again, even on the UK.
Mar 07th, 2013 - 04:04 pm - Link - Report abuse 0
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Conqueror
@1 You're quite right. The way to tackle this problem is to offer some government bonds for sale. I expect that around US$200 billion should be enough. Use this to “kick-start” the economy by starting lots of capital projects. Don't worry about repayments because there won't be many. Place about half the money raised in secure deposits. Switzerland in the president's name is a good idea. In about four years' time, after the rest of the money is spent, tell the bondholders that you need to “restructure” the debt. Offer them 35 cents on the dollar. Point out that this is far better than what argieland offered. If you get the right interest rate on the US$100 billion you salted away, it should pay the “expenses”. About 0.001% should be enough to cover legal fees and bribes! If the worst comes to the worst, get advice from a neighbour.
Mar 07th, 2013 - 05:31 pm - Link - Report abuse 0
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ChrisR
@2 Conqueror

You really, really, can't help being an absolute fucking dick head at times, can you?

Even when The Dark Country caused severe problems for Uruguay they chose a positive way to tackle the problem and everyone ended up being paid back ALL their money AND the accrued interest, albeit at a slightly longer time scale.

Uruguay are being singled out by the main stream economists as the way forward for Greece (too late now the fix / fuck-up from the EU is in).

Please try to keep up with the financial world and not focus on AR and tar everybody with the same brush.
Mar 07th, 2013 - 06:22 pm - Link - Report abuse 0
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Stevie
The scene of Gollum discussing with Smeagol comes to mind...
Mar 08th, 2013 - 07:26 am - Link - Report abuse 0
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ChrisR
@4

Well, your favourites are Dead Man Now Dead and TMBOA, I think eother of the others shows a meteoric rise in intellect over that pair together.

We are all Chavez! Only if you are a deadhead, that is.
Mar 08th, 2013 - 11:12 am - Link - Report abuse 0
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