The Argentine political landscape is often caught in a bind, facing the perennial dilemma of overspending beyond its budgetary limits. Sooner or later, this fiscal recklessness necessitates a reckoning. The aftermath takes the form of soaring inflation (or even hyperinflation), defaults, imposing heavy taxes, or succumbing to exchange rate crises. Essentially, the public sector shifts the burden of its fiscal imbalances onto the private sector.
Dollarization and Confidence Shocks in Argentina
Dollarization and Confidence Shocks in…
Dollarization and Confidence Shocks in Argentina
The Argentine political landscape is often caught in a bind, facing the perennial dilemma of overspending beyond its budgetary limits. Sooner or later, this fiscal recklessness necessitates a reckoning. The aftermath takes the form of soaring inflation (or even hyperinflation), defaults, imposing heavy taxes, or succumbing to exchange rate crises. Essentially, the public sector shifts the burden of its fiscal imbalances onto the private sector.