Argentina has abruptly called on the International Monetary Fund for financial help, amid currency pressures. We review recent economists’ position on this.
Monica de Bolle says that the action taken by the government of President Mauricio Macri is hard to square with the fact that the country was the darling of the financial markets a little over a year ago, having pulled off the sale of a 100-year bond.
Part of the explanation of the abrupt turn certainly lies with the excessive optimism over the country’s ability to dig itself out of the very deep hole caused by a decade-and-a-half of economic mismanagement. The tide turned some three weeks ago when skittish investors – fearful of the global repercussions of a potential US-China trade war, combined with a likely rise in US