Monday, November 9, 2015

The Argentinean election, the economy and more

On Sunday, November 22, Argentineans are going to the polls. The two candidates represent significantly different projects, and not just in economic terms. On the one hand, there is Daniel Scioli, governor of Buenos Aires, ex-vice-president during Néstor Kirchner’s presidency and (even if not completely trusted by those closer to President Cristina Fernández de Kirchner) the candidate of continuity. On the other hand, Mauricio Macri—wealthy scion a business family with origins as public works contractors, president of a popular soccer team, and currently mayor of the city of Buenos Aires—is the main opposition candidate.
The election takes place during uncertain economic times.

The Argentine economy grew spectacularly from 2003 (the year after the default) to 2011, including a speedy recovery from the global economic crisis in 2008-9. However, since then the economy has basically stagnated, and inflation has been high. As a result, real wages—which grew fast during the boom years, leading to a reduction of inequality—have now essentially stagnated. And that probably explains to some degree Macri’s rise in the polls and the surprising tight race in the first round of the election.

Read rest here.

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