Argentina´s problems are not solved through devaluation

The devaluation caused an extraordinary increase in tax collection, but the increase in public spending was higher due to the strong growth of economic subsidies. As expected, the attempts to go back to the “productive model” through devaluation are failing since the current context is very different from the one on which salaries and pensions were lowered during the 2002 crisis. The deteriorating balances of the companies providing public services due to the devaluation will require higher economic subsidies.  

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