A Scapegoat Falls In Argentina

Firing Economy chief Cavallo may not spur growth

At Divisar, an exchange house in downtown Buenos Aires, there were more tellers than customers on Monday morning, July 29. It was the first full business day after Argentine President Carlos Menem sacked Economy Minister Domingo Cavallo, the architect of the country's five-year-old economic recovery program. Although previous government changes in past years triggered financial panics, the tranquility at Divisar this time reflected Cavallo's success in convincing Argentines that his policies have put the country on a steady economic course. "The change is the person, not the policy," says Divisar teller Eduardo Martin.

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