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Transcending Neoliberalism - Essay Example

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Argentina was recently in the news for its protest about its unbearably difficult economy while Brazil is considered as the rising stars being a member of BRIC…
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Transcending Neoliberalism
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Transcending Neoliberalism

Download file to see previous pages... Popular and state mandated huge wage increase resulted to inflation compounded by unchecked inflation in the 1980s. These economic policies also resulted in huge foreign debts amounting to three fourths of its national output. It worsened when the state forced the peso to be equal to the dollar. The country bottomed out and defaulted on its debt in 2001 causing its President Adolfo Rodriguez to resign. Various economic policies were then adopted to resuscitate the economy from debt restructuring to expansionary monetary and fiscal policies to checking inflation. To check inflation government held back exports. In 2012, Argentina restricted its import and adopted a tighten foreign currency control.
Brazil’s economic policy on the other hand adopted an inward-oriented economy that boosted its global competitiveness. It adopted policies of sustainability and economic liberalization that further boosted its national competitiveness. It maintained a controlled inflationary rate, adopted a floating exchange rate and disciplined fiscal spending that further boosted its economy.
Hall, Patrick and Hall, John. Argentina’s Economic Policy: Failing to Learn from History. Web. April 21, 2014 ...Download file to see next pagesRead More
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