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When A Country Doesn’t Trust Its Own Money

May 11th, 2019 · No Comments

  • Argentina’s biggest economic problem is the lack of credibility of its currency. At the first sign of trouble, it tends to plunge.
  • A peso plunge is liable to set all sorts of self-reinforcing mechanisms in motion, basically acting as a giant self-fulfilling prophecy.
  • There is no easy remedy for this structural situation, but from time to time, it offers the risk-tolerant investor a chance of outsized returns.

Source: When A Country Doesn’t Trust Its Own Money | Seeking Alpha

Tags: Economy