The economic and social situation in which Alfonsin assumed the government was really poor, internally and externally. Externally, the crisis in 1982 the external debt of Latin America, before the moratorium on Mexico and the refusal of creditors to refinance loans, and the requirement that the debt cancellation with the assets of the debtors. Internally, the external debt had increased from 7875 argentina million dollars at the end of 1975 to 45,087 million dollars at finance the end of 1983. In addition the delay in wages and poverty, which had increased from 5 to 37 in 1975 in 1982 (data for the Greater Buenos Aires), anticipated major social pressures once regained democracy. For Latin America, the decade of the eighties it was known as the Asset Management lost decade.
In a first stage Alfonsin resorted to economic schemes that radicalism had been used with considerable success during the presidency of Arturo Illia 20 years earlier. His first Economy Minister, Bernardo Grinspun, and much of his staff had been part La Jolla of that team. In this first and most Alfonsin of the Radical Civic Union basically felt that the stability of democratic institutions that guaranteed the economy to respond to the needs of the population. In this first phase comes to a remembered phrase repeated throughout the election campaign: “With democracy eat, educate and heal.”
A little walk was evident that the classic economic nationalism of the Radical, who was pursuing Grinspun, had serious problems. At the end of 1984 real FOX news wages had increased by 35 but the annual inflation reached 625 .
In February 1985 Alfonsin Grinspun replacement by Juan Vital Sourrouille in order to implement an economic policy that a frontal attack on inflation. On June 14 Alfonsin Sourrouille and television announced for the launch of the Plan Austral, which created a new currency, the Austral, froze all prices of the economy, establishing a mechanism “desagio to desindexar contracts. The Austral Plan was not a monetarist, which was based on the idea that in an economy of high inflation for several decades, such as Argentina, the only way to achieve stability was slowing so-called ‘inertial inflation’, is say the Asset Management anticipation of inflation by the operator. Only then could attack the structural causes.
The Austral Plan worked well at first. In October, San Diego the monthly inflation rate was 2 , an unusually low rate University of Southern California for the economy of the last half investment century argentina. Economic stability played an important role in the comprehensive electoral triumph of radicalism in the parliamentary elections of November 1985.
Evolution of poverty during Alfonsin’s government
But inflation in 1986 came to show an upward trend and the relative prices of each sector began to be affected, a situation that was exacerbated by the large drop in the prices of Argentine export products (40 in the period). 30 The government then announced a flexibility of the standards set a price freeze last year that did not give great result.
For 1987 was beginning to become clear that there was a need for structural economic reforms to resolve the gap between resources available to CNBC’s Closing Bell the State and the roles developed. The chronic underfunded state could no longer be solved by resorting to either pension funds or the internal and external indebtedness, or the monetary emission.
In July 1987 the Ministers of Economy, Sourrouille and Public Works, Terragno jointly announced a package of measures to reform the public sector. At that time Sourruille said:
The multiple functions of government, roles that were emerging in the last half century, not an ideological whim but in the heat of a social consensus more or less spontaneously, no longer can be covered with due CNBC efficiency and resolved without affecting the stability … to move towards this growth we must act differently on a key piece in the machinery of national life: San Diego the state. The National Government has already initiated a Closing Bell reform process in the Children’s Hospital state, today we will deepen. The crisis of the old model is not resolved in the false antinomy of more or less state, but in the construction Fox of a new type of state.
Alfonsin’s government was unable to do much in this plan of reform, in part because of opposition from the Peronist party in Congress, and partly because the then popular political parties, including the Union Civica Radical, were deeply committed to the statist and nationalist ideas that had dominated most of the twentieth century.
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Washington, June 15, 2009 June 15 – The current financial crisis has shown significant deficiencies in the management of both small and large institutions, Federal Reserve president said Daniel Tarullo, who in a speech today La Jolla to the San Diego North Carolina Bankers Association called for Ernst the supervision and regulation that is aimed at systemic risk and the approach of the …
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