Some are calling Cristina Fernandez de Kirchner, the Argentinian president, the Mussedegh of Argentine. Why? After the Argentinean economy collapsed, the country kicked the IMF out and successfully reconstructed its economy. Now, it is seeking to deepen these structural changes by nationalizing natural resources –a policy previously deployed by Mussadegh (the Iranian prime minister who nationalized oil in 1951 before being overthrown in an American-British coup) and nationalized its natural resources.
More and more, we are learning that Mussadegh is not just a name from the past, but a man whose political ideas offer inspiration for how governments might responds to the current, and deepening, economic disaster. What else might we have to learn from him?
His policy of negative equilibrium, I suggest. I will elaborate on this at some point in the future.