Argentine Government

Clear that the magnitude of both movements is much lower than that observed in the crisis of 2001, while the Government has tools to curb these situations. Can Argentina suffer a crisis like in 2001? In principle one should say no, the current situation of the Argentine economy, as mentioned above, is different from that observed at that time and it has today, much more flexibility (something not allowed convertibility) and tools to overcome the difficult moments without having to pay a high price as it happened with the end of convertibility. I say in principle, because one observes many times how the Argentine Government is autolimita in its economic policy action when it refuses to recognize the reality. This systematic denial imposes a restriction on the possibilities of action as convertibility imposed at the time. A case witness of this, is what has happened with the question inflationary, that refusing the reality when it had exceeded 12%, this increased steadily to more than 30% (in this sense, the external crisis and internal turbulence, did you well to the Argentine economy). Currently, the Government continues to work on measures to encourage economic activity from different fronts and surely today there will be ads in this regard. But apart from this attitude of denial that has proven as Government property, in recent times already is out of necessity or for noble reasons, has been accepted worried the current economic situation of the country, which makes suppose that the stage of denial, would lose viability.

Then, assuming a Government with capacity of reaction, the risk that the Argentine economy is currently facing undoubtedly is not the gravity of which had to face in order to convertibility, although it is not one lower risk to despise it. The current risk, which many economists have made reference in recent days, is that the country, facing a scenario of zero growth. So is that already anticipates that private investment and external sector will be components of the product that most affected will be about the current situation of internal turbulence and external crisis. The consumption of families also feel the impact, while public spending will act partially compensating for the deterioration of other components of Argentine GDP. What should the Government do now? Beyond the economic policy measures that might take the Government at the moment, I think that best thing you can do is take advantage of the crisis has forced it to a partial sinceramiento to so completely honest the problems of the Argentine economy and begin to seek solution. Moments of crisis like that is experiencing, beyond the concerns that might generate, are propitious times for changes of Fund in the economic policy of the countries. Is that the crisis situation facilitates different sectors that struggle to the benefits, agree to cede in the negotiation to facilitate measures that in other times would have seemed impossible to materialize. So for example, one might think that in this context, would be the Government easier to lay workers and employers and ask them the first to yield, at least partially in their wage claims, and seconds that kept jobs and prevent increases in prices on their goods and services. Argentina faces a great challenge, and within this great challenge, a great opportunity to correct the mistakes that have been committed do leverage it?