Even the opposition has resigned itself to the IMF’s plan
is it to throw a man ten feet of rope if he is drowning in 20 feet of water?” asked Kenneth Rogoff, former chief economist of the, in this newspaper 15 years ago. His question still bothers the institution he used to advise. Last June the fund uncoiled its biggest-ever loan: $50bn for Argentina. Four months later it added $6bn more. It hoped its generosity would rescue Argentina and salvage its reputation in a country that regards it as complicit in the economic disasters of 2001-02.
The first thing a drowning man should do is jettison excess weight. Argentina’s government, led by Mauricio Macri, has slashed its fiscal deficit, aiming to balance the budget this year, excluding interest payments and some capital and social spending approved by theGet our daily newsletterBut such fiscal rigour will be hard to sustain. And imports are not the only claim on Argentina’s dollars.
That return is possible because growth has been slow to recover and inflation hard to repress: consumer prices rose by over 57% in the year to May. High inflation has put downward pressure on the peso . The peso’s falls have, in turn, put upward pressure on prices. Argentines are quick to convert their deposits into foreign currency, and many wages and prices are set with an eye on the dollar. It is thus hard to stabilise prices without also stabilising the exchange rate.
The fund, and its biggest shareholder, America, seem eager to give this government the benefit of the doubt. For its part, the government has not blamed the fundwhen Néstor Kirchner, Ms Fernández’s husband, was president in 2005, has said it will not walk away from the programme if it wins the election, though it will seek to renegotiate the terms.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10 troubled, triumphant years for the Michael Jackson estateWhen Michael Jackson died 10 years ago, his estate had two major goals: erase the singer's debts and restore his image as an artist. “We had to show the real Michael, the real artist, and not the tabloid sensation,” co-executor John Branca told AP.
Read more »
After its 16th bail-out, Ghana hopes to put the IMF behind itAbout one-third of infrastructure projects in Ghana are never finished
Read more »
'Euphoria's Jacob Elordi on Tackling Toxic Masculinity and That Locker Room SceneElordi also spoke about moving on from Netflix rom-com 'The Kissing Booth' and breaking down Hollywood tropes with the HBO drama.
Read more »
Air quality committee rejects ban on toxic acid used in South Bay refineriesAir quality officials moved to close the door on a ban of a dangerous acid used at two South Bay oil refineries that community groups have sought since a 2015 explosion raised concerns about the potential for a catastrophic release.
Read more »
Jury Finds Prison Inmate Guilty of Break-ins at Wayne Newton HomeWeslie Hosea Martin, 22, has previous burglary-related and firearms convictions and could face up to life behind bars as a habitual criminal at his sentencing Aug. 15 in the Newton case.
Read more »
Margot Robbie and Priyanka Chopra's Go-To Makeup Artist Shares Her Fall Beauty Must-HavesPati Dubroff breaks it all down, from the best skincare products to buy to the unexpected tricks you would never expect.
Read more »