Argentina: Kirchner's Populism and a Darkening Economic Future

Rapidly rising inflation has stolen the headlines in Argentina. President Nestor Kirchner's considered approach to dealing with inflation has been to fan populist flames and threaten companies that raise prices with higher taxes. Unfortunately for Argentina, since the government is politically unwilling to carry out necessary economic reforms following the 2001 collapse, counterproductive state intervention is likely to remain the primary means of managing the economy, which can only mean that trouble lies ahead.