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5/ #CFK also oversaw an unprecedented increase in government spending that was “muy por encima de los máximos históricos.” This led to a yawning budget deficit that @mauriciomacrio inherited from CFK. Or the “la pesada herencia”
6/ the current crisis must be seen as the continuation of a decade long crisis created by populist economic policies caused by “la política de apreciar y luego mantener el tipo de cambio real bajo, la persistente expansión del gasto público y el colapso de las exportaciones”
7/ the way out is to correct for the twin deficits. The government needs to “estimular las actividades transables para aumentar las exportaciones y la producción que compite con importaciones.” Indeed, export promotion and import substitution is key to any program.
8/ the suggestions to do this are to promote a competitive exchange rate, maintain high foreign exchange reserves, incentivize exports, reduce the budget deficit, and reduce overseas tourism.
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