Electoral Economics

ARGENTINA - Report 29 Jun 2015 by Esteban Fernández Medrano
Executive Summary While the fiscal imbalance continues to deteriorate, activity indicators have been showing signs of improvement over the last months. Such relatively “benign” economic change ahead of the elections is no coincidence. Contrary to 2014, the Government has not only relaxed its fiscal policy further but has also set loose its monetary position. But precisely, given the macroeconomic imbalances, we believe that this positive change in activity indicators with calm inflation might be short-breathed. Two months ago, election polls were showing unfavorable trends for the Governmen...

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