Comments on Macri’s Macro by Federico Sturzenegger
14 Pages Posted: 24 Oct 2019
Date Written: October 10, 2019
Sturzenegger’s paper details Argentina’s transition to an orthodox, center-right government that employed experts like himself to stabilize the economy following 12 years of populist administrations. Four years later, and with inflation twice the level inherited from the populists, there is widespread disappointment with Macri’s handling of the economy. What went wrong? According to Sturzenegger, the key mistake was the change in the inflation target in the middle of a “successful disinflation program.” While this is an intriguing claim, the paper does not explain why Macri and other members of the government failed to appreciate his progress and fired him. It would be ironic if all we could conclude from this episode is that Macri’s Achilles heel was, in the end, just old-style populist short-sightedness.
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