All comparisons are odious, so like so much, how about if we compare the Salvadoran economy with a car.
mounted in the car we all, do not they feel like Mafalda? "Stop the world I want to get off", and unless a miracle occurs the government takes the helm, lets not get into polemics. It turns out that from the macroeconomic point of view There are four major public policy (the purists will say three, but then it does not work the example) we can apply to move the unit: monetary, fiscal, exchange and foreign relations (the example is very clear, 4 Policies -> 4 wheels) .
In English, that is completely free making definitions are: Monetary policy determines the amount of money circulating, fiscal, what the state spends, exchange, exchange rate and relations with other currencies with the outside, how open or closed will be the relationship, mainly influenced by tariffs and incentives. If these four policies are applied with skill, preferably by a Chicago Boy, there will be limits on the growth of a country and everyone will be happy. A Ferrari 599 GTB would rise, as a comparison, not a politician.
sounds fantastic, almost orgasmic, but in El Salvador dollarized then we can not print money, at least not legally, then multiply by zero monetary policy. Interestingly, the exchange rate is fixed, then we can use exchange rate policy. At this point we could have a bike as an economic model is not bad, but all agreements with the WTO and FTAs, is that our foreign relations are becoming more open, tariffs tend to be eliminated, as well as incentives (have they heard about what happened with the drawback? .)
So what?, Our economic model has become a unicycle (I'm not saying that driving a clown), which reminds me that phrase of Churchill: "A nation that tries prosper a tax base is like a man with feet in a bucket trying to get up by pulling the handle. "
Cold comfort: this not only happens in third world countries.
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