At that time
When this occurs, Argentine authorities looked to the IMF in desperation. It wasn’t the very first time: Argentina looked to the IMF in 2000 whenever, after 3 years of recession, it absolutely was struggling to program its massive financial obligation. The IMF conditioned its loans on financial investing cuts, accelerating Argentina’s economic depression and making the huge December 2001 crisis that then followed inevitable.
Very little has changed in the IMF within the 18 years since Argentina’s final experience. In mid-June 2018, Argentina had finalized a three-year stand-by agreement for $50 billion, the biggest loan into the IMF’s history. By having a really flawed diagnostic of Argentina’s problems as a place of departure, the conditions connected to the loan had been classic IMF: financial austerity having a zero financial deficit target excluding financial obligation solution repayments; a renewed dedication to an inflation-targeting financial policy; a drifting trade price regime; and closing main bank funding of this treasury, and others. Continue reading “Enter the IMF”