Understanding Argentina's current stance on exchange rate and monetary policies

ARGENTINA - Report 16 May 2025 by Domingo Cavallo and Joaquin Cottani

The economic policies enacted by Argentina’s government since December 2023 have been successful on many fronts, but there are storm clouds on the horizon that cannot be ignored. The most important achievement so far has been fiscal consolidation. However, while impressive and strictly necessary for economic stability, this condition alone is not sufficient. Also needed is some assurance that the public sector will continue to be externally solvent.

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