The Argentine crisis should alert governments and investors against the temptation of disguising structural problems with timid adjustments and monetary imbalances.
Gradualism did not solve structural problems and the peso collapsed even more in fear of returning to the monetary and confiscatory policies of the Kirchner era.
Argentina also shows us that risk builds slowly and happens fast.
How did we get here?
In 10 years, Argentina increased the money supply by 1,200% to finance growing political spending. Argentina suffers the highest tax wedge in the region and one of the highest for companies