Important Guardian UK piece about why Argentina's economy has boomed (free traders won't like it)

[marmar]

(Guardian) One of the great myths about the Argentine economy that is repeated nearly every day is that the rapid growth of the Argentine economy during the past decade has been a "commodity export boom". For example, the New York Times reported last week:

"Riding an export boom for commodities like soybeans, Argentina's economy grew at an average rate of 7.7% from 2004 to 2010, almost twice the average annual growth of 4.3% in Chile, a country often cited as a model for economic policies, over the same period."

........(snip)........

The myth of the "commodities export boom" is one way that Argentina's detractors dismiss Argentina's economic growth as just dumb luck. But the reality is that the economic expansion has been led by domestic consumption and investment. And it happened because the Argentine government changed its most important macroeconomic choices: on fiscal, monetary, and exchange rate policies. That is what took Argentina out of its 1998-2002 depression and turned it into the fastest-growing economy in the Americas.

Now for the world-wide significance of how Argentina's recovery actually happened: as I and many other economists have written, the policies currently being imposed on the eurozone economies – especially the weaker ones – are similar to what Argentina went through during the depression that led to its default and devaluation. These policies were pro-cyclical, meaning that they amplified the impact of the downturn. Together with a fixed, overvalued exchange rate, they made the economy worse. By defaulting on its debt and devaluing its currency, Argentina was freed to change its most important macroeconomic policies. ...............(more)

The complete piece is at: http://www.guardian.co.uk/commentisfree/cifamerica/2012/may/04/argentina-magic-soybean-export-boom

[malaise]

1. Good read

Iceland also told them where to shove it

[Ichingcarpenter]

2. The IMF is a US based control structure for economic hitmen

I think the article is good but doesn't touch other aspects of the Argentinian success. Many companies were taken over by the workers during their economic depression and their banking structure changed.

kick nom, good read.

[bemildred]

3. When you get rid of the parasites, naturally your health improves. nt

[fascisthunter]

4. why do we in the US have to cow-tow to Free-Trade... is it a religion

is it some set-in-stone proven theory that helps lift all boats, because I am seeing just the opposite.