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Teaching Economics

In the News

Argentina raises interest rates to 40 percent

Graham Watson

5th May 2018

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Lots of coverage as you would expect about the state of the Argentinian economy, with news that the central bank has raised interest rates three in a week, rates leaping from 27.25% to a staggering 40%.

Inflation has been a perennial problem in the country, and this move is designed to counter a depreciation of the peso. However, moves such as this can only work if investors have confidence in the ability of the central bank to arrest the slide; if it's interpreted as a sign of weakness the move might well have counter-intuitive effects.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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