Argentina’s government is resorting to old habits, having turned to deficit monetisation and drawing down the central bank’s FX reserves in recent weeks. While these unorthodox measures will help to service its dollar debts in the near term, it is an unnerving sign of the government moving towards Cristina Kirchner-style policies. Elsewhere, we think fears among Mexico’s central bank board that this year’s minimum wage hike will push up inflation are overdone. Finally, Q4 data suggest that the worst of the disruption to Chile’s economy following recent protests is over.
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