Argentina gets "red card"

By TIMOTHY SPANGLER
December 19, 2012 12:59

Short-sighted and populist policies are sending the Latin American country backwards.

4 minute read.



Skyline of Buenos Aires, Argentina

The Buenos Aires skyline Argentina 311 (R). (photo credit:Enrique Marcarian / Reuters)

Inflation continues to be a significant challenge to Argentina and its struggling economy.  The International Monetary Fund this week took a hard stand against the country’s leaders by demanding that the government significantly improve its measurement of inflation, growth and other key economic data.  Official reports traditionally understate inflation and other metrics significantly when compared to independent measures.

If Argentinian President Cristina Fernandez de Kirchner fails to comply with these demands, Argentina could face expulsion from the IMF and other key multinational groups, such as the G20.  Interestingly, Czechoslovakia was kicked out of the IMF for similar reasons in 1954.

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