There is growing
optimism about Argentina’s prospects. Columbia University economist Andrés
Velasco notes:
http://www.project-syndicate.org/commentary/macri-argentina-after-kirchner-by-andres-velasco-2015-11
“The current account
is roughly in balance, so there is no need for further import compression. And
because no one would lend to Argentina after it defaulted in the early 2000s,
the government has relatively little debt. By allowing the peso to depreciate,
Macri could achieve two goals at once. A weaker currency would stimulate
exports and allow imports to grow as foreign-exchange controls are lifted.
Meanwhile, because a significant share of government revenues are
dollar-linked, while its expenditures are mostly in pesos, devaluation would
reduce the budget deficit.”
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