Political Observer offers some thoughts.
Is there any ‘good news’ coming from Argentina?
Headline: Argentina: Peso in Free Fall as Thousands Mobilize Against Macri and the IMF
Sub-headline: In the past few hours, the Argentine peso has been devalued from 35 pesos to the dollar to 40 pesos to the dollar. What is going on?
Leo Zino August 30, 2018
Argentina: Peso in Free Fall as Thousands Mobilize Against Macri and the IMF
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Headline: Argentine peso suffers steepest fall since 2002 crisis
Sub-headline: Argentina’s currency, the peso, has seen its sharpest one-day fall since the country’s 2002 financial crisis.
January 23, 2014
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Headline: Argentina finance minister axed on economic uncertainty
Sub-headline: President requests resignation of Prat-Gay due to ‘differences’ in department
December 26 2016
https://www.ft.com/content/2d82da08-cb8c-11e6-864f-20dcb35cede2
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Headline: Argentina’s call for IMF help was brave but danger remains
Sub-headline: Recent drama may turn into just another act in a sadly familiar play
May 11, 2018
https://www.ft.com/content/5612f998-545d-11e8-b3ee-41e0209208ec
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Headline: Argentina’s peso falls again as Macri tries to shore up support
Sub-headline: President unveils raft of emergency economic measures after major political setback
August 14, 2019
https://www.ft.com/content/56fca4e0-be96-11e9-b350-db00d509634e
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Headline: ‘There’s no future in Argentina’: Peronists face voter anger in midterms
Sub-headline: A crumbling economy and soaring inflation stoke discontent that threatens ruling party in next week’s polls
November 8, 2021
https://www.ft.com/content/cdd1ce4e-8cd8-46fc-b0a2-d48c98afc726
What might the reader think of the continuing failure of the de Kirchners, Macri and now the Fernández/de Kirchner alliance, to address a seemingly perpetual economic crisis? A description of the problem, and a diagnosis is offered by Lucinda Elliott and Michael Stott.
Inflation was 52.5 per cent in the year to September, one of the highest rates in the world, and economists fear it could go higher still next year. The government insists its policies will bring prices under control.
“We consider that inflation is being attacked with consistent macroeconomic policies which allow Argentina’s net exports to grow in a sustained way and that monetary issuance can be reduced to a speed which is compatible with the state playing a countercyclical role to underpin the recovery,” economy minister Martín Guzmán told the Financial Times in an interview.
“We believe that prices and incomes policies are a necessary element in an economy which is resolving its problems of macroeconomic co-ordination.”
But economists say that such recipes have been tried and failed numerous times before.
Which ‘economists’ are the writers paraphrasing in this paragraph?
“Needless to say, in our view, this policy is unlikely to curb inflation,” Citibank said of the price freeze. “We believe that the announcement of price controls by the authorities is evidence they have run out of tools to fight inflation.”
To drive the point home Lucinda Elliott and Michael Stottoffer this ‘proof’ :‘More than 20 leading figures’ have ‘voted with their feet’. Embellished by this:
Amid the economic chaos and political uncertainty, more people are opting to emigrate. A recent study by the consultancy Taquion Research found that eight in 10 working age Argentines would leave the country if they could. Despite coronavirus border restrictions, 130,000 people departed the country to work or study abroad in the first nine months of the year.
I have rendered in bold face this rather dubious assertion, notion, of ‘if they could’! Where is the data? Perhaps ‘to work or study’ offers a clue?
Political Observer
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