Coming Soon: Greater Instability

ARGENTINA - Report 15 Jan 2014 by Esteban Fernández Medrano and Domingo Cavallo
Executive SummaryArgentina is experiencing a typical inflation–devaluation spiral. The government’s fiscal deficit has climbed to 4% of GDP. Monetary issuance to close the gap explains 2013’s 32% expansion of the money base, though net monetary expansion was 22% for the year, due to the contractionary effect of FX interventions.The new economic team accelerated the rate of devaluation to an average of 6% monthly (or 100% annualized), in an effort to slow the decline of reserves, and to shrink the gap between the official and the parallel FX exchange rate. But that attempt failed. The FX gap...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.