The IMF’s second chance in Argentina

Last year, Mr Macri went to the IMF. The two parties contracted to lock in the very policies that had caused the crisis in the first place, under a $57bn rescue package, the largest in the IMF’s history.

The IMF should take more seriously its own research on the role of fiscal policy and the management of capital flows.

It shows that austerity policies have a negative impact on economic growth and employment, as admitted by Olivier Blanchard, the IMF’s then chief economist, and consequently on the fiscal accounts.

FT 28 October 2019





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