Frustration over the economy

rickulivi

Registered
Traditional economic theory indicates that a very effective way to lower inflation is to raise interest rAtes so they are very positive. In turn this causes a severe recession. This is exactly what’s happening in Argentina.

Will these sky high rates drop inflation rates?. Maybe, maybe not, and that’s because Argentina continues to be a very closed economy.

If macri continues to insist with high interest rates and eliminates the fiscal and trade deficits for more than one year or two, perhaps then inflation will drop dramatically. In the meantime, poor argentinos. They will suffer but this also opens up opportunities.
 

Johnny

Veteran
My local buddy in BsAs says he has never seen so many folks, of all ages, sifting through the dumpsters.
 

Bajo_cero2

Well-Known Member
Traditional economic theory indicates that a very effective way to lower inflation is to raise interest rAtes so they are very positive. In turn this causes a severe recession. This is exactly what’s happening in Argentina.

Will these sky high rates drop inflation rates?. Maybe, maybe not, and that’s because Argentina continues to be a very closed economy.

If macri continues to insist with high interest rates and eliminates the fiscal and trade deficits for more than one year or two, perhaps then inflation will drop dramatically. In the meantime, poor argentinos. They will suffer but this also opens up opportunities.
I think that whatever you do is going to fail if you have a so important usd flight and to take international loans with no limits to acchieve it.
 

perry

Veteran
How did the IMF formula work out in Greece.. ?
Greece in spite of being part of Europe has been decimated by cutbacks and the lowest wages in Europe . This has changed Greece from a once proud culture to now the beggars of Europe . Most greeks of education have left for sunnier pastures in United Kingdom, Canada, USA, Australia etc etc . The IMF only destroys and never builds .
 
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