How soon will Argentina return to “Common Sense Economics”?

ARGENTINA - Report 04 Dec 2014 by Domingo Cavallo
“Common sense economics” refers to a countercyclical fiscal policy that tries to generate fiscal surpluses (or at least fiscal balance) when external conditions feed an economic boom and confine fiscal deficits to recessionary scenarios; a monetary policy that targets inflation; trade and exchange rate policies oriented to an efficient opening-up of the economy; efforts to improve the investment climate; and reliance on the markets and private initiative to allocate scarce resources to investment and production. Two years ago I wrote a note asking how far Argentina’s return to “common sense...

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