Comments on Macri’s Macro by Federico Sturzenegger

14 Pages Posted: 24 Oct 2019

See all articles by Rafael Di Tella

Rafael Di Tella

Harvard Business School - Business, Government and the International Economy Unit; National Bureau of Economic Research (NBER)

Date Written: October 10, 2019

Abstract

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.

Suggested Citation

Di Tella, Rafael, Comments on Macri’s Macro by Federico Sturzenegger (October 10, 2019). Harvard Business School BGIE Unit Working Paper No. 20-025. Available at SSRN: https://ssrn.com/abstract=3474368 or http://dx.doi.org/10.2139/ssrn.3474368

Rafael Di Tella (Contact Author)

Harvard Business School - Business, Government and the International Economy Unit ( email )

Cambridge, MA
United States
617-495-5048 (Phone)
617-496-5985 (Fax)

HOME PAGE: http://www.people.hbs.edu/rditella/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
42
Abstract Views
575
PlumX Metrics