Economy / Argentina
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Inflation Rising But A Spiral Unlikely
May 2008 | Economic AnalysisSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Inflation in Argentina is rising, while inflation expectations are soaring. We believe that inflation will rise over the course of the year as the policy mix remains expansionary and distortionary. However, in the absence of a currency devaluation, we believe that an inflationary spiral is unlikely to ensue.