Argentina does not seem to know which way to go, says IBRE researcher

Lia Valls explains that Argentina has been facing serious structural problems for decades, such as uncontrolled public expenses, price freezes, and a long overdue postponement of currency devaluation - factors that discouraged investors.
Institucional
29 Janeiro 2014

The Argentine government needs a plan to fight the crisis as soon as possible and avoid a chaotic feeling in the economy, says the researcher of the Brazilian Institute of Economics (FGV/IBRE), Lia Valls, to the newspaper O Globo, about the current economic situation in the neighboring country.Lia explains that Argentina has been facing serious structural problems for decades, such as uncontrolled public expenses, price freezes, and a long overdue postponement of currency devaluation - factors that discouraged investors.According to the researcher, although the Argentine government is acting, it does not seem to know which way to go and, if it does not manage to present an action plan, it will leave the impression that the economy is in chaos. Lia indicates a likely leap for the inflation rate in the country with currency devaluation.With respect to Brazil, the researcher believes that there is no risk that this crisis will get here, but she admits that there may be an impact on our exports to Argentina.

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