Re-globalization via capital account liberalization: Argentina’s capital controls and sovereign debt renegotiations under Macri

Purpose This paper aims to examine how media discourse and political narratives shape the outcomes of economic policies, specifically regarding capital controls. By analyzing the press surrounding Argentina’s economic policies, this study finds that the media’s framing of market liberalization can either accelerate financial globalization or buffer its effects. The study argues that policymakers must counter the media’s tendency to externalize economic downturns by promoting a more nuanced public understanding of internal responsibilities. Furthermore, the study reveals the press’s strong bias toward supply-side interventions and deflationary measures, urging policymakers to actively explore and communicate the value of demand-side policies as a viable alternative for economic stability. Design/methodology/approach This study provides a discursive content analysis of articles from Argentina’s largest periodicals: Ambito Financiero, La Nacion and El Clarin. It covered available articles during President Macri’s early administration, focusing on capital control reforms and bond holdout renegotiations. The analysis specifically examined coverage of Macri’s rationale for lifting capital controls and resolving bond holdouts. Employing a two-step framework, the methods combine qualitative discourse analysis for context with quantitative content analysis to score the financial press’s advice and biases. The analytical framework delineates ontological commitments, conceptual logics and policy biases. It also provides an empirical analysis of key economic metrics. Findings The case found that Macri and the financial press provided a very effective discursive strategy that appealed to voters. Nonetheless, preexisting high inflationary pressures, coupled with a strong domestic demand for dollars made capital account liberalization a complex economic policy issue. An influx of speculative investor capital, if not carefully managed, could exacerbate inflation through a “pass-through” to domestic prices. Simultaneously, the persistent flight of resident pesos and dollars (capital flight) weakened the peso, directly impacting the price level and the external sector. Originality/value All work is original and meant to gain greater analytical purchase over Macri’s re-globalization efforts during his one term presidency, namely, capital account liberalization and the renegotiation of Argentina’s sovereign debt with New York hedge Funds.