The pros and cons of changing the inflation targets

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The pros and cons of changing the inflation targets

Enero 2018

December was a hectic month for Macri’s administration, with relevant news in the economic, social and political fronts. On the one hand, the Government succeeded in passing the 2018 Budget, the tax reform and the Pension Reform in the Lower House. Although it was finally approved, the Pension Reform has drawn criticism from opposition politicians and labor unions, and generated social unrest as many people think it hurts retirees. The debate had to be temporarily suspended due to rioting outside the Congress.

On the political front, the events of December brought both good and bad news. Although the approval of the reforms was key to improve the fiscal consolidation, the confidence in the Government recorded its largest fall (-20.3%) during Macri’s Administration, doubling the drop of April 2016 (10%).