Monthly

The double zero strategy (zero primary deficit and zero growth of the monetary base) appears to be achieving financial stability, as the Peso has strengthened and interest rates have been falling. How hopeful can we be that it will work? It seems that after a year in which the government has been playing trial and ...

There was another round of run on the currency during August, which was caused largely by local events. Although other emerging-markets currencies underperformed and put extra pressure on the exchange rate, the Argentine Peso was the worst: YTD it depreciated more than 100%, followed only by the Turkish Lira (75%). ...

In Argentina the dollar is king, as some key indicators such as consumer confidence, the government’s positive image and financial stability dance at its tune. There are few countries where consumers, investors and politicians follow so closely the evolution of the exchange rate and where devaluations can topple gov...

The strategy of a gradual reduction of the fiscal deficit that the government implemented since the outset had always had one weakness: it depended on external financing.  Confidence was of the essence. Unfortunately, the increase in US interest rates, the strengthening of the US dollar combined with some domes...