This week’s New Yorker uses the Buenos Aires small change shortage to illustrate the key role confidence plays in any economy: Argentines are hoarding monedas in anticipation of never being able to gather enough coins for the bus, while US financial institutions are withholding credit in anticipation of defaults – which leads to an even greater scarcity of coins/credit. The BA coin crisis is something we reported on back in October 2007 with this video on Current TV, and later on Argentina Reporter with this post in April 2008.
Filed under: economy
