Monetary policy: Argentina takes its bitter medicine

Another financial crisis has rocked the country. As it slips into what could be a deep recession, time is running out to achieve the recovery that could create the conditions for a pro-market candidate to win next year’s presidential elections.

 

IN ADDITION        


Gradualism is dead in Argentina. 

In its place a new strategy has been devised to tackle the country’s monetary and fiscal challenges. It has just begun to be implemented. 

But it is going to be a strong, inflation-fighting medicine with many serious and unavoidable side effects and a level of toxicity that may kill the administration’s ability to govern. 

The most obvious side effect will be a deep recession, already underway and that is expected to be lead to a contraction of around -2.5%

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