Scholarly Comments on Academic Economics

Argentina’s problems went far beyond the absence of a strict currency board: Comment on Schuler

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*Brad Setser* is Head of Global Research and Senior Economist at Roubini Global Economics and a research associate at the Global Economic Governance Programme at University College, Oxford. He served at the U.S. Treasury Department from 1997 to 2001, wher

Abstract

KURT SCHULER ARGUES MOST ECONOMISTS (MYSELF INCLUDED) failed to get the facts right. Schuler writes, “economists whose work in other areas I admire failed to do the research necessary for understanding Argentina’s situation accurately. As a result their analysis was faulty” (Schuler 2005, 235). This mischaracterization of Argentina’s economic situation led them to prescribe inappropriate policies, not the least recommending that Argentina end its tight link to the dollar.