Feb 19, 2008

Problemas de peso

La vuelta de la inflación a la región:

Inflation can spell serious trouble for the region. In countries that have lost monetary discipline, the inflationary spree can easily get out of control, especially once higher prices are embedded into people's expectations. Even worse, governments in the region are punishing Latin American consumers in two ways: by eroding both the domestic purchasing power and the foreign exchange value of their currencies.

Latin American governments are following the mercantilist credo that holds exports as good and imports as bad. The resulting inflation is essentially a hidden and highly regressive tax that punishes those who have the least.

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