Shaky stability

RARELY have I seen a situation like this one. The economy is finding an uneasy and shaky stability; as inflation peaks, the exchange rate looks like it might well stick, the backlog of unpaid dividends is being cleared, interest rates are on a downward trajectory from here on, the current account has returned to surplus, reserves are stable and so on. The list can get as long as one wants. But the problems are growing. Rarely have we seen a situation where the economy stabilises while the government gets shaky. Usually, political and economic stability go together in our history. And mind you, I’m talking about economic stability, not growth. Paradoxically, periods of booming economic growth are also periods when politics becomes shaky.