Question

your opinion ?

a) is Argentina able to meet its balance of

payments needs?

b)Is Argentina able to meet its debt service obligations to the IMF?

c) Should the Argentine authorities request Fund financing?

d) Do you expect the Argentine peso to depreciate or appreciate in the near future? 5. What do you expect about the future evolution of the balance on primary income?

Answer 1

Some aspects of Argentina’s economic situation, however, are highly desirable – not least its low debt-to-GDP ratio. As a result, Macri’s government faces a much less daunting task than the one confronting Kirchner in 2003, after a decade-long experiment with Washington Consensus policies (financial deregulation, trade liberalization, and privatization), together with the peso’s peg to the US dollar, ended in disaster. When Kirchner took office, Argentina had just experienced its most severe economic crisis ever. Unemployment, inequality, poverty, and the national debt had all risen. Massive deindustrialization and deep weaknesses in its education system did not bode well for the future.