SMP: The never-ending Argentine fiscal business cycle

Post en Sound Money Project sobre el eterno problema del deficit fiscal en Argentina y el nuevo gobierno de Cambiemos.

15 years after carrying out the biggest sovereign default in its history, Argentina finally reached a debt accord with its holdouts. The agreement between Mauricio Macri’s administration and the holdout litigants in the U.S. Court of Law has finally been reached. This is good news for the country. The government can resort, if needed, to international financial markets and issue government debt. Until now this possibility was constrained to only a few creditors like Venezuela, who would charge a considerably high interest rate to lend money to the Kirchner administration, its political ally.

Seguir leyendo en SMP.