The market reaction says it all. Roberto Lavagna’s resignation as Argentina’s economy minister late on Monday led to a sharp drop in the peso, bonds and stocks, with the latter falling 4.5 per cent.

Mr Lavagna was not only largely responsible for Argentina’s financial rehabilitation since the 2001 crisis. He was also the only minister capable of standing up to Nestor Kirchner, the country’s increasingly autocratic and left-leaning president. His replacement, Felisa Miceli, is an economist and banker who has publicly described herself as a “soldier in Kirchner’s crusade”.