ECONOMIC SITUATION IN ARGENTINA

Economic situation in Argentina



Economic Situation in Argentina

Introduction

In the early 1990s, the government of Argentina undertook a series of important reforms in economic policy, including monetary policy, fiscal policy, structural policy, and international trade policy. Perhaps most dramatic and immediately noticeable was the change in monetary policy.

Did the peso lose even more of its value than it had by early 2002?

With the context of foreign exchange, dollar aims in increasing selling pressure to the liquidation of the exporters, mainly from the coarse grain harvest. This is compounded by the fact that interest rates in pesos have been increasing (largely by Lebacs tenders to "dry out" the square of the monetary issue used to buy the excess dollars) and also that the expectation low exchange rate means that many savers choose to switch to foreign currency deposits in pesos, further increasing the supply of dollars. The overall economy has continued to grow on a yearly basis, but every month has been noticing a slump in the overall product, this is because certain factors that have also been commenting, saturation capacity need for new investment, legal uncertainty, etc. (Ambos, 1997)

The contract negotiations with public service concessionaires have finally begun, but not very good prospects. The need to raise rates is at odds with the official policy of freezing, but basically the point is the lack of agreements that allow clear the picture into the future. This affects investment decisions and has even led to the sale of majority stake in Edenor, by France's Electricite de France. In turn, also has decided to retire these days the company Suez (France) from Aguas de Santa Fe, given the difficulties of return is presented. Precisely the energy problem is cropping up fairly quickly, has to do with the issue of renegotiation of ...