# GlobalSource Partners | The government can still reverse the boomerang

> Economist Domingo Cavallo's February 2018 report says uncertainty over monetary policy after the government raised its inflation target to 15% has pushed up expected inflation for 2018. He argues the government can still reverse this by using fiscal and wage measures alongside monetary policy. The report points to a binding cap on primary spending growth of 16% and wage-increase targets of 15%.

- Date: 2018-02-07 · published 2018-02-07T12:00:00.000Z
- Category: macro · region Argentina · magnitude low
- Page: https://feedsoft.ai/events/66752-globalsource-partners-the-government-can-still-reverse-the-boomerang
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

Rising inflation expectations and the policy mix affect the peso and Argentina's macro stability, which influence the country's import costs and export competitiveness. The direct effect on feed commodity prices is limited.

## Sources

- globalsourcepartners.com: https://www.globalsourcepartners.com/posts/the-government-can-still-reverse-the-boomerang-effect-on-expectations-of-the-new-inflation-target/teaser

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.