VOXeu - 1 Jul 2015
In the chorus of divergent opinions and conflicting advice on what Greece should do, the idea that it should follow Argentina’s experience (by reintroducing the drachma that would then sharply devalue) is gaining traction, with some pundits (like Stiglitz) claiming that this example shows that “there is life” after a devaluation. In this short posting that reads in 2 minutes, the former Argentinian policy-maker explains why this is a terrible idea.
Published in Weekly selection 10 July 2015
Project Syndicate - 7 Aug 2014
Another take on Argentina’s recent default. The two economists argue that US federal judge Thomas Griesa’s ruling prevents Argentina from fulfilling its obligations and simply encourages usurious behavior and threatens the functioning of international financial markets. They also make the point that a “repayment on Griesa’s terms would devastate Argentina’s economy”.
Published in Weekly selection 9 August 2014
The Financial Times - paywall - 1 Jul 2013
The Morgan Stanley’s head of global macro explains why the current events in emerging markets do not mark the end of the emerging world miracle, but simply a return to the “normal postwar cycle of recession and recovery, political unrest and calm, after a misleadingly placid decade”. He reminds us that for every emerging nation mired in crisis, there is one reforming (like Mexico) and booming (like the Philippines).
Published in Weekly selection 5 July 2013