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submitted 11 months ago by zephyreks@lemmy.ml to c/worldnews@lemmy.ml
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[-] ExLisper@linux.community 1 points 11 months ago

I would agree if Argentina wasn't so fucked right now. The goal is not to make Argentina great but to get out of crisis. I think what can happen is that all this drastic cuts and price hikes will lower inflation and stabilize the economy. With inflation under control and normal interest rates people will be able to start saving money again, take out mortgages and import goods. This could improve their situation if public services survive but my guess is they will end up fully owned by foreign capital at the end.

[-] merc@sh.itjust.works 1 points 11 months ago

I think what can happen is that all this drastic cuts and price hikes will lower inflation and stabilize the economy

It might, or it might not. The thing with inflation is that it's based on people's expectations as much as anything else. People have to believe that inflation will go away before it goes away.

The new president has one thing going for him, which is that he's not a continuation of the previous administration. That means there's a chance that people will believe that he's actually making serious reforms. If they'd stuck with a prime minister who was the finance minister when the inflation was going nuts, I don't think anybody would have believed that things were going to improve, which meant they wouldn't improve.

this post was submitted on 25 Dec 2023
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