, Columnist
Why Argentina Struggles to Become a 'Normal Country’
The central bank tried to contain currency turmoil last week by raising interest rates to an eye-popping level.
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Encouraged by President Mauricio Macri’s credentials as an economic reformer, many had hoped Argentina would turn the page on its costly history of economic mismanagement and, as Macri said, become a “normal country.” Instead, the nation was back in the spotlight last week as it frantically tried to contain currency turmoil by raising interest rates to an eye-popping level in the context of destabilizing capital flows.
The turbulence is putting at risk much-needed economic reforms and is having some negative spillover effects on other emerging economies.