The broad-based sell-off in Argentine assets over the past week or so, triggered by growing political risks, has resulted in a sharp tightening of financial conditions, which will weigh on economic growth in the coming quarters. More worryingly, there is now a real risk of a potentially toxic feedback loop forming, in which weak economic activity and political risks become self-fulfilling.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services