It is cold comfort that global imbalances are effectively eliminated. The cost is a prolonged global recession, with massive foregone output. If this scenario were to occur, the risk of protectionism would undoubtedly rise, potentially exacerbating the damage. Finally, consider a “framework scenario,” one that highlights the large gains that the G-20 process could – and should – produce (Chart 5).
The structural conditions we have built leave no room for speculation and reflect on the banks’ solvency and liquidity after three years of positive systemic profitability, also involving an unprecedented Central Bank balance sheet. This allowed us to adopt a decisive preventive action in the peso market.