Richard D'Agostino’s Post

MILEI AND THE IMF NEED TO TACKLE ARGENTINA’S NEW ACHILLES HEEL Financial Times opinion article by Alejandro Werner, the director at the Georgetown Americas Institute and a non-resident senior fellow at the Peterson Institute for International Economics. 5 Key Takeaways: 1. President Javier Milei's administration has eliminated Argentina's public sector deficit and initiated significant economic reforms since taking office in December 2. The initial economic policies led to high inflation and economic challenges, but also significant progress in disinflation and fiscal correction 3. Milei's fixed exchange rate policy, while initially beneficial, is now seen as an Achilles heel, limiting economic incentives and destabilizing financial markets 4. The government plans to slow the pace of disinflation, focusing on economic recovery and stabilizing the currency without dollarizing the economy 5. Milei's next steps include modernizing monetary policies and obtaining enhanced financial support from the IMF to stabilize Argentina's economy for long-term growth #Argentina #LATAM #Milei #Alejandrowerner #tradefinance

Explore the depths of Pakistan's economic landscape with our latest book: "Monetary Policy: Crafting a Path for Pakistan’s Economic Stability" Authors: Abdul Jalil and Hafsa Hina from Pakistan Institute of Development Economics - PIDE In Pakistan's ever-changing economy, high inflation, monetary policy, and exchange rates play crucial roles in shaping the country's financial situation. This book gathers scholarly insights to help understand how these elements are connected and how they affect Pakistan's economy. #EconomicInsights #MonetaryPolicy #PakistanEconomy #BookLaunch Link: https://lnkd.in/dxYYczuy

Lebanon’s story prompts us to reconsider the balance between laissez-faire principles and government action. The case study highlights the dangers of relying solely on market dynamics and underscores the government’s crucial role in steering economies toward stability and inclusivity. The narrative of Lebanon’s economic turmoil remains in progress, an unfinished chapter in the broader story of economic evolution. The synthesis of market autonomy and government intervention may well be the elixir needed to rejuvenate economies from crisis. The answer to this complex puzzle lies in a balanced approach, integrating the strengths of both economic freedom and thoughtful governance—a mosaic still to be completed in the unfolding narrative of economic resurgence. #Lebanon International Monetary Fund Banque du Liban Association of Banks In Lebanon https://lnkd.in/dXeVEsEF

We have published our January Outlook. We concentrate on the emerging global #recession and publish a list of 105 U.S. #banks that survived our Great Depression 2.0 scenario. GnS Economics #deposits #chinaeconomy https://lnkd.in/dVCHK2i2

I'm pleased to share that my article, "Sri Lanka, the IMF, and Pathways to Economic Stability," has been published by the London School of Economics and Political Science on their SouthAsia@LSE blog. You can read it here. https://lnkd.in/g6SNi3_a

Explaining economic and financial crisis in developing economies (Lebanon fits as a case study) through Financial Dependency and Subordination to developed economies. Financial dependency and subordination are characterized by a high reliance on foreign capital inflows directed towards speculative financial investment attracted by relatively high interest rates in developing economies (which is also a main characteristic of financial dependency and subordination). This leads to a highly dollarized and fragile financial sector characterized by maturity and currency mismatches with high foreign exchange exposure like in the case of Lebanon 70 percent of deposits were in dollars, and a large compnent of its loans were in dollars. This results in a financialized economy, highly vulnerable to external shocks especially sudden stops in capital inflows and flow reversals and to exchange rate risk; along with their inability to borrow long-term in their own currencies from international finanacial markets (known as the original sin). The crisis happens with the "sudden stop" of capital inflows and capital flow reversals leading to a currency crisis and the collapse of the dependent and fragile financial sector, which could result in a dramatic collapse of national output and a severe and protracted recession... without the central bank being able to act as a Lender of Last Resort since it has limited foreign reserves and it can't actually print dollars to rescue the dollarized financial sector and the economy.

I got an opportunity to work on a group project for my subject Managerial Economics for Decision Making. The group consists of 5 members from 5 different countries including the USA 🇺🇸, Taiwan 🇹🇼, Sweden 🇸🇪, South Africa 🇿🇦, and India 🇮🇳. I have learned a lot from my group members. In this project, we were responsible for managing the economy of a medium-sized country, for a period of seven years. We were asked to make monetary and fiscal policy decisions that make the country’s population happy—both by maximizing real GDP growth and by keeping the unemployment rate and budget deficit as low as possible. Inflation also needs to be low, but remain positive—deflation is destabilizing to an economy. Along the way, we were tasked with analyzing economic growth forecasts and receiving yearly updates from our policy advisors. Our yearly decisions: - Interest rate - Income tax rate - Corporate tax rate - Government spending How we were measured: - GDP growth - Unemployment rate - Inflation rate - Budget surplus or deficit I want to thank Professor Mark Tuminello for giving us such a great opportunity. Pace University Pace University - Lubin School of Business Lubin School of Business Pace University #EconomicManagement #PolicyDecisions #GDPGrowth #InflationManagement #FiscalPolicy #MonetaryPolicy #EconomicAnalysis #PolicyAdvisors #GovernmentSpending #EconomicForecast #BudgetManagement #InterestRateDecisions #TaxPolicy #EconomicStability #SevenYearsChallenge #NationalEconomy #DecisionMaking #StrategicPlanning

Read our latest Research Report on Argentine Macroeconomics! We examine Argentina’s ongoing economic reforms, highlighting the government's fiscal achievements and the challenges posed by the exchange rate instability ⚖ . We discuss how these factors are shaping the bond market and what they mean for investors 📊.

Kenyan Economists Urge IMF to Reconsider Stringent Conditions Kenyan economists are calling on the International Monetary Fund (IMF) to reassess the rigorous conditions attached to the $2.34 billion facility approved in April 2021, which was intended to aid… #Economists #IMF >>> Read more

Kenyan Economists Urge IMF to Reconsider Stringent Conditions Kenyan economists are calling on the International Monetary Fund \(IMF\) to reassess the rigorous conditions attached to the $2.34 billion facility approved in April 2021, which was intended to aid the country's post-Covid economic recovery. This call to action was made during t... [...] #Economists #IMF Read more... https://lnkd.in/dC8Muw9M