YAWNING deficits,stubborn inflation, a plunging currency, or spiking interest rates,dwindling reserves and a humbling turn to the IMF. Argentina seems to be going through a classic emerging-market crisis, culminating in the governments decision this week to seek a precautionary loan from the fund—an institution that fears Argentina almost as much as Argentina fears it.
The country is not quite repeating its own crisis-ridden history. Argentina today has a reformist government largely intent on doing the lawful thing, or rather than the populist administrations that blighted its recent past (see article). But its troubles are genuine. Many wonder whether they will spread to other emerging markets. Several economies share one or two of its vulnerabilities. Mercifully few share all of them.
Argentina’s rate of inflation,which exceeds 25%,...
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Source: economist.com