Argentina: Will the IMF Save or Doom Macri's Reform Agenda?
Argentina: Will the IMF Save or Doom Macri's Reform Agenda?
Argentina's turn to the IMF to relieve pressure on the peso carries significant political risks for the president.
After weeks of relentless pressure against the peso, on May 8 Mauricio Macri announced the beginning of discussions with the International Monetary Fund (IMF) for a credit line. The decision might placate financial markets and provide time for the government to continue its gradual reforms. But the deal will come with a heavy price: The IMF is infamous in Argentina – rightly or not – as the main culprit of the economic, social and political collapse of December 2001.
The origin of the present financial crisis was the shift of short-term financial investments from emerging markets...
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