As expected, the Fund's Board of Directors approved the review of Argentina's program, although it made it clear that Massa failed to meet all goals. The IMF applauds the fiscal effort promised by...
Politics Complicate an Already Complex Economic Situation
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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 with inflation, where the most radicalized sectors put the priority on price controls and on limiting the increases in utility rates while others put more emphasis on the fiscal imbalance, on reducing energy subsidies and on a more prudent monetary policy.