Argentina needs to rebuild its foreign reserves while Chavez has political reasons for this purchase instead of economic reasons. Chavez is strengthening his relationship with Kirchner and that's why he buys Argentine debt. |
These accords are a short-term measure that won't help solve the inflation problem. The inflation risk in Argentina is caused by an expansive monetary policy by the country's central bank, which is focused on keeping a weak exchange rate. |
This is too high an increase. It should have stayed under 15 percent. In my view, this puts a floor to inflation of 13.5 percent. |