Argentine Economy

Like the seven plagues that whipped to Egypt at the time of slavery of the town of Israel, the flight of capitals, majors needs of financing by reduction of the fiscal surplus and the reduction of the external surplus, they are united to put on approval to the dollar in Argentina. A very interesting observation done by Melconian is related to the imports, which collapsed product of the abrupt stagnation of the Argentine economy. In relation to it, Melconian noticed envelope which will happen with the same as soon as the economy begins to recover. Probably we observe a fast growth in the volume of imports that will be reflected in the deterioration of the external accounts. To know more about this subject visit Richard Elman. This abrupt fall in the volume of imports, indicates that something is happening with the Argentine economy. And the one in charge to reveal that was Broda something that is happening to him: Argentina already is in recession. It had already commented to them about my projection of the dollar in Argentina towards end of year in levels of $4. It considered inopportune to think about a value superior by the inflationary risks that it would entail.

Nevertheless, the projection average of the dollar done by these economists, indicated a type of change to $ 4.40, with extreme estimations of $ 4,80. The problem that brings prepared to consider a type of change in levels so elevated in relation to the present ones, is that it implies a risk of greater rate of inflation, since the exchange devaluation would move at least partly to internal prices (because the producer that continues receiving a certain amount of dollars in the outside, will try to apply the same price in the local market). The previous thing also implies that the Argentina needs resources that must generate through a fiscal discipline that throughout all the management of the Kirchner, have demonstrated not to have, and of the contribution of the international organisms, before the closed financial markets for Argentina.