According to a recent article published at Mercopress.com, economist Carlos Melconian stated that rather than consulting with Economists to determine a solution to Argentina’s economic riddles, authorities should consult with a psychologist to better understand the workings of the country and its economy.
Despite increased consumption and an apparently growing economy, the country is experiencing serious capital flight which may suggest a lack of confidence in government policies over the long run.
Having defaulted on more than $80 billion in debt at the beginning of 2002, Argentina suffered through a severely unstable economic instability as a result. Only recently has Argentina’s severe unemployment issue returned to normal levels from an estimated high of jobless rate of 25% after the debt default of 2002.
Reports suggest that current inflation rates sit at 11%, and may continue rising.