ionary monetary policy (“Profiting from virtue”, February 7th). This is incorrect. To better 
understand our approach one must recognise that Argentina has had a long history of macroeconomic 
instability and fiscal and external imbalances,
coach outlet store, which led to periods of high inflation and a highly dollarised 
economy. 
In our emerging economy the private credit market remains highly segmented and is equivalent to only 
12% of GDP, compared with an average of 30% for Latin America, weakening the power of monetary 
policy to affect aggregate demand. Argentina’s economy is still cash-intensive, so the power of fiscal and 
wage policies to affect demand and expectations is predominant. Therefore,
coach outlet online store, it is critical to track the 
recent evolution of fiscal and wage policy together with monetary aspects when making judgments about 
expansionary policies. 
Furthermore, to help weather the international financial crisis we are building buffers, such as 
accumulating foreign reserves, and making sure our financial system is solvent and highly liquid. The 
Central Bank is committed to pursuing a robust monetary policy through the strict control of the growth 
of the means of payment. 
Monetary aggregates have been growing at diminishing rates since 2004. In fact, private sector M2 is 
growing at less than 10%, far below the growth of nominal GDP. This is consistent with the monetary 
programme presented every year before Congress and which aims to maintain the equilibrium between 
supply and demand in the monetary market. Preventing a new crisis is a priority: it is imperative that we 
pursue a dual mandate of monetary and fiscal stability. 
Martín Redrado 
Governor Central Bank of Argentina 
Buenos Aires 
Wrong on a rights offering 
SIR – When reporting on Rio Tinto’s proposed investment deal with Chinalco, you stated that “alternative 
methods of financing, notably a rights offering, would have certainly been dilutive” (“Undermined”, 
February 14th). I’ve noticed that Rio’s chairman,
coach bags for sale, Paul Skinne