[Tail Gunner]

(05-24-2018 11:57 AM)Mekorig Wrote:  

In fact, the current administration is having serious talking with the local industrialist (mostly the food industry) about it to contain the price raising.

If you mean price controls, that is a huge mistake that always ends badly (see Venezuela). Only creating a free market economy will fix the problems. Higher taxes and higher spending is a surefire way to chase away investors and prolong economic malaise. Why would President Macri appease his opponents? They caused these problems.

Quote:

Political decisions within Argentina exacerbated the external shock. Foreign investors became keener still to sell Argentine bonds and buy dollars when the government brought in a new capital-gains tax in order to appease its opponents. Political tensions within Cambiemos, the governing coalition, over how quickly to reduce subsidies for energy and utility bills cast doubt on the government’s commitment to cut spending.

https://www.economist.com/finance-and-ec...ntine-peso