1/ The #IMF released a new working paper on the potential effect structural reforms could have in #Argentina’s long-term growth. It argues, if Argentina implements the reforms the country could “add 1–1½ percent to average annual growth of GDP.”
http://www.imf.org/en/Publications/WP/Issues/2018/08/03/Assessing-the-Impact-of-Structural-Reforms-Through-a-Supply-side-Framework-The-Case-of-45937 …
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2/ Argentina has underperformed compared to its peers regarding labour productivity, with almost zero growth since 1980. This means that Argentina is priced out of markets due to its inefficient production & this can help explain why the recourse of devaluation is so common.pic.twitter.com/sOrPGdzPHu
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3/ Argentina is also the worst performing country among OECD countries re: product market regulation. That is, policies that protect industries (rent seekers) and reduce competition. The recent success of airline deregulation shows how much the country needs competition.pic.twitter.com/T3TilARtcB
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4/ they estimate that reforming Argentina’s product market regulations (that is increasing competition and reducing prices and thus raising real wages) will have a huge positive impact on employment, much greater than labour market reform.pic.twitter.com/0xqJ6dlwr9
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5/ although there is much more in this paper, the authors end by stating that these reforms will take a long time (decades even) to bear fruit. The challenge for Argentina’s to avoid the populist temptation!pic.twitter.com/W2Bc3mivmM
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