If I lived in Argentina, would be a "maverick economist."
In a recent article in the Financial Times that the great guru of the global crisis got in his blog, Roubini lays out a very interesting parallel between Latvia and Argentina in 2000-01 (or Latvia, as preferred).
The flag of Latvia is equal to that of Argentina, but instead of blue, have red. Farming is an important part of the economy, fiscal and trade deficits have the debt represents around 70% of GDP (both measured in euros) and a fixed exchange rate between the lats, the local currency and the euro. Sound familiar? Some data: private debt is nominated primarily in euros, which would trigger a devaluation certainly a default chain. Sound familiar?
This Roubini explains in his column , which synthesizes a sort of escape plan: devaluation, "euroizar" the economy, restructure the debt and close a program with the IMF to mitigate the impact of adjustment. Except for this last point, the recipe Argentina with touches of style. What such?
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