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The Big Picture

Argentina's Economic Crucible

Though many had hoped that Argentinian President Mauricio Macri would be able to fix the economic mess left by his predecessors, Argentina has now had to appeal for provisional international assistance to stabilize its currency. Has the country's economic deliverance been derailed, or merely postponed?

In this Big PictureAndrés Velasco argues that the latest crisis occurred despite sound reformist policies, which now need to be defended from attacks by Peronist populists. But Martin Guzman and Joseph E. Stiglitz point out that even if Macri should remain committed to fiscal retrenchment, Argentina’s monetary policy must change.

Mohamed El-Erian takes a global perspective, and calls on major central banks to be more mindful of the effects that steep monetary-policy adjustments can have on foreign-exchange markets. And Carmen Reinhart warns of problems lurking at the local level: namely, the ballooning debts of Argentina's provinces.

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