Monthly

Monthly Reports

The costs and perils of policies to muddle through

November 2022
The economy continues to be in slow motion mode, as there is a gradual deterioration in economic activity, inflation remains relatively stable in the 6.3% range, international reserves dropped but have not collapsed while the parallel exchange rates remain relatively stable. While there are still concerns about one ...

The IMF Meeting in Washington: Concerns about the world and still little interest in Argentina

October 2022
We attended the IMF meetings that took place in Washington in mid-October.  The main theme was world inflation, where the discussions centered on whether the burst of world inflation was just caused by temporary supply shocks due to the pandemic and the war in Ukraine, or in if instead it was mainly driven by t...

Time of courageous decisions to avoid a full-blown crisis

July 2022
Batakis takes over the Ministry of the Economy at an extremely difficult time. Reserves are at a critical level, as they just cover less than two weeks of imports, inflation is accelerating, and the parallel exchange rates seem to be out of control.  If we add to these problems a fiscal deficit that far exceeds...

Politics Complicate an Already Complex Economic Situation

May 2022
The IMF program triggered a conflict within the government coalition between the populist and more “orthodox” sectors. The key differences are the importance that each of then attach to the targets set in the IMF program. Targets require tighter monetary and fiscal policy, and the difference in the approach to deal ...

An IMF program that nobody likes but everybody needs

March 2022
The IMF program was finally approved by Congress, though at a heavy cost for the government because Cristina and the Campora opposed it.  Fernández had to rely on the opposition for the approval in Congress and had a setback regarding the law because the opposition was only willing to vote for the new IMF finan...