Economy & Business - January 2008 (ISSN 1741-7430)

The new government is keeping on with the previous government's loose fiscal and monetary policies. The government is keeping up its spending and monetary issuance. The growth in the money supply is largely the result of the policy of committing the central bank to neutralise inflows of hard currency, which are running at around US$90m a day. Like its predecessor, the current government does not want the let the peso become overvalued. This policy keeps Argentine exports competitive both in international markets and in Brazil.

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