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Macroeconomics of Argentina - Research Paper Example

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This paper talks about the recent trends in the macroeconomic development of Argentina. It is argued that a new paradigm of stable political governance and economic simulation is established in Argentina after the crisis of 2002 as a re-institutionalized market for investment and economic growth. …
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Macroeconomics of Argentina
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Macroeconomics of Argentina

Download file to see previous pages... This research paper is one of the best examples of analysis of the macroeconomics of Argentina, which involves review of the monetary and fiscal policy, growth rates, unemployment rates, inflation, and currency exchanges in the country.
Traditionally, Argentina was one of the countries in Latin America that had better social indicators. Compared to the other nations in this region, Argentina’s inequality and poverty levels were very low. The country had widespread labor protection policies and the unemployment rate was low . Academic studies show that the socioeconomic status of Argentina has been deteriorating since 1970s with the sharp increase in poverty levels. When the crisis of 2001/02 ended, the economy started showing signs of recovery as the major social indicators continued improving significantly.
The economic context described by many financial analysts depicts the inflation rate of Argentina as being unsustainable. Years before 2002 portray inflation in Argentina as fluctuating and high. However, the rate of inflation in this nation recorded at its lowest before the Tequila effect at 4 percent a year and almost at zero a year after this effect.
The government applied generally an ambitious strategy. Sometimes ad-hoc and vague, it encourages growth, manages it with reference to the macroeconomic prudence, re-industrialization, and moderate state intervention . To some extent, this strategy represents a new approach of social inclusion that bases economically on the revival of domestic markets led by the state. ...Download file to see next pagesRead More
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