Unlike in the 1980’s, we have a low and manageable level of debt, our banking system is robust, well-capitalized with a low level of non-performing loans, and we have a more than adequate level of official reserves – about $ 9 billion.
Our Achilles heel is the high level of inflation which can reduce fiscal space, since in principle, too much deficit financing can easily add to inflationary pressures. Fortunately, there are compensating forces that are supporting a reduction in inflation.