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Argentina

They expected many changes, but: What was happening with the economy in Argentina? Let’s see: The first thing to say at this point is that inflationary problems were attacked at any time (Or anyone heard any statement about it?), And that is why the same escalated and it seems they are now gaining dynamism. As an example of this, simply observe what is happening with the negotiations salary: many unionized today are demanding increases of over 30%, while others who had already agreed earlier this year increased nearly 20%, now seek a further increase driven by the effects of inflation (teachers unions Province Buenos Aires, who had made three months ago a 24% wage increase, a further increase in demand now.) Many claimed that the new government was to curb public spending, but none of this has been happening and it is growing at around 40% yoy. Nor could do a lot on energy, this problem is compounded by the low temperatures now to put more pressure on aggregate supply, and torn by conflict from the field and the disincentive to productive investment. Thus, the inflation problem has worsened and is pressing the government to spend more money on subsidies to prevent the situation from larger purchases. The grants, this big ball of garbage under the rug that there is no way hide, threaten to become unsustainable … What will happen when the government decides to remove them, at least partially? How long can increase subsidies to avoid price hikes? Of the nearly six months of the new government, honestly have not seen that done too.