Axe the Bank of Portugal to prevent further economic damage

In Portugal, economic challenges have been exacerbated by the actions of its central bank, the Bank of Portugal. Central banking practices, notably interest rate manipulation, have led to inefficient resource allocation and economic mismanagement, echoing issues seen during both the Estado Novo and the First Republic eras. High government time preferences have resulted in unsustainable public spending and inflation, creating a cycle that erodes individual incomes. Additionally, the issuance of treasury bonds has been a significant factor in increasing public debt, which has fostered further fiscal mismanagement with little accountability for political leaders. The populace is increasingly displeased, with a significant portion desiring lower taxes and inflation, but misaligned incentives have persisted due to prevailing political dynamics. As such, the current economic climate continues to prompt calls for reform, positing that the abolition of the Bank of Portugal may be a necessary step toward restoring economic stability and prosperity in the region.