Argentine government economists agree the Peso in over-valued and hurts non primary exports

Thursday, August 23rd 2012 - 01:46 UTC

Full article 6 comments

Three Argentine economists, particularly close to the government of President Cristina Fernandez have admitted that the Argentine Peso is overvalued and is causing problems for non commodity exports which need to be addressed. Read full article

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Brenda
“ part of the economic problems faced by Argentina are an overvalued US dollar” should say undervalued US dollar or overvalued peso against the dollar, right?
Aug 23rd, 2012 - 02:14 am - Link - Report abuse 0
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JoseAngeldeMonterrey
Their economist never accepted it, and will never do it, but some countries in South America have been suffering from Dutch Disease, notably Brazil and Argentina, and Chile to a lesser degree, because they have concentrated their exports on natural resources and primary products (commodities) and have seen a decline in their manufacturing sector.

Wikipedia: ”Revenues from natural resources (or inflows of foreign aid) will make a given nation's currency stronger compared to that of other nations (manifest in an exchange rate), resulting in the nation's other exports becoming more expensive for other countries to buy, making the manufacturing sector less competitive.”
Aug 23rd, 2012 - 05:12 am - Link - Report abuse 0
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yankeeboy
Which will come first; Peso 10/1 or Patacones? I am leaning towards Patacones maybe around the Christmas bonus time....
Aug 23rd, 2012 - 10:17 am - Link - Report abuse 0
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British_Kirchnerist
#2 What is Dutch Disease?
Aug 23rd, 2012 - 12:59 pm - Link - Report abuse 0
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Captain Poppy
It's the correalation between the increase in the exploitation of natural resources and in impact to the decrease in manufacturing
Aug 23rd, 2012 - 01:23 pm - Link - Report abuse 0
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ChrisR
I think it should be renamed 'The Argentinean Disease' so eveybody knows what it is. :o)

Or does anyone know a better subject for the 'accolade'?

I bet there will be a few replies to that.
Aug 23rd, 2012 - 06:47 pm - Link - Report abuse 0
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