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The Trouble with Argentina

Although Argentina benefited somewhat from the pandemic-driven shift in global demand toward physical goods, its recovery has hardly been strong enough to offset other deficiencies. With inflation high and the real interest rate on its debt exceeding its trend real GDP growth, the country is still heading for a cliff.

NEW YORK – In a recent commentary, Joseph E. Stiglitz describes Argentina’s recovery in 2021 as a “COVID Miracle.” Yet in our view, the country is heading for another economic disaster.