After the initial adjustments, it is expected that inflation will begin to decline. The data for January and private measurements for February seem to indicate this.
The key is in governance, says economist Ricardo Hazuazu. The government proposed eliminating the total fiscal deficit, that is, including interest payments, and claims to have achieved it in the month of January. To do so, he proposed tax increases and spending cuts, which in total represent an adjustment equivalent to five points of GDP. Part of this adjustment is not paid by Argentines but most of it will fall on the shoulders of some Argentine.