Argentina put the financial cart before the horse
http://thehill.com/opinion/finance/387605-argentina-put-the-financial-cart-before-the-horse
The Argentine peso’s free fall is providing a painful economic lesson to Argentine President Mauricio Macri.
In the same way that it is not a good idea to put the cart before the horse, it was not a good idea for Macri to completely lift his country’s capital controls before stabilizing the highly imbalanced economy that he inherited from Christine Kirschner.
This raises the all-too-likely possibility that Macri is soon going to be forced to reintroduce capital controls to break the Argentine currency’s free fall.
Soon after coming to office in December 2015, Macri took the bold step of eliminating Argentina’s highly restrictive capital-control system. However, he did so without forcefully addressing the country’s serious macroeconomic imbalances.
Instead, he opted for a policy of gradual economic reform. As a result, on the eve of entering into a decisive tightening phase of the interest rate cycle, the Argentine economy was very much exposed to less-favorable global liquidity conditions and to U.S. dollar appreciation.