Carlos Melconian’s hard criticism of Javier Milei and Luis Caputo’s economic plan: “It already failed”

The economist and former president of Banco Nación, Carlos Melconianhe praised the “pragmatism” and the “ Fiscal conviction“by Javier Milei although he also predicted that Javier Milei’s model and Economy Minister Luis Caputo” is based on short -term solutions that sooner or later they will pay faces“

“The problem is not the currency, the problem is the economic model. And that model already failed “he sentenced.

Regard They need a devaluation. I never integrate the Devaluacionista Club, But neither does the appreciatorist club”Said the former president of Banco Nación in reference to the current debate on the exchange rate value.

Carlos Melconian’s analysis of government exchange policy

When consulted by the current debate around the value of the exchange rate, Melconian explained: “It gives the impression, because it shows, that the process of convergence between what the exchange rate and the restructuring they have to do all those who need a higher dollar that goes at different speeds. ”

“That Argentina had a canyon quilombo and that it received a backward dollar and negative reserves was very evident,” Melconian added, referring to the criticisms that Milei made to the former Minister Domingo Cavallo and other economists who warn the government for a backward exchange rate. At this point, the former president of the National Bank said that “we must have balance in the macroeconomy between fiscal and the exchange” and that although “having surplus in the treasury” is important does not imply that “With the dollar I can do what I feel like”

“And the opposite either,” he analyzed. At this point, he exemplified with what happened with Brazil that “it is a country to which there are plenty of reservations in dollars and has no debt in dollars, and yet The exchange rate escaped. Because? Because it has so much fiscal deficit and fourth fiscal deficit that it has a exchange problemalthough he has dollars to paint your face. There is no central bank with more firepower in the world than the Brazilian. ”

At another point in its interview with Urban Play, Melconian referred to the economic projections that Argentina could receive a Strong income of dollars for the growth of its exports of energy, mining and agribusiness. “My advice is not to lie exclusively in the fiscal to get calm with that issue. There is no death cow that prevents you from that problem. Vaca Muerta is yet to come, and covering that bridge with credit is not advisable, ”said Melconian.

“We have to learn from history, not to say if we are better or worse, but not to make the same mistakes”He explained.

Other strengths of government exchange policy is the validity of the exchange rate and the possible exit. On this level, the economist praised the “pragmatism”Of the Government. “The best thing that has happened was that you did not find any Liberalote Berreta on the path that would have asked to release and float, things are accommodated. That was a great risk. This government showed that when you have the hot potato, you are frowned… ”, He described.

“Argentina is with a popularized exchange control problem,” he explained although he later acknowledged that “getting it out is not easy“

“What they did with the reservations is ingenious, but it ended,” Melconian predicted. “That model that allowed money laundering and sales in dollars is no longer. Now you have to see how the deficit will be financed,” he explained.

About government work To lower inflation and the lack of accumulation of reserves. “There is no country in the world that does not need reservations. And I want to go to Brazil again. You can have all the endowments of firefighters together in the reserves, which you can also, Not setting fire, but devaluing the currency. You have to find a balance. It is very important to paste the Brazilian format to what is happening in Argentina, ”he insisted.

“The success of power deflation the economy is to recover the confidence and credibility of the excrement. ” It was in reference to the change of milei approach, which in the campaign pointed against the weight and now holds a exchange appreciation scheme.

Finally, Melconian explained that “the recovery of the” will be vital “Peso demand” for “Consolidate the disinflation process”In the face of the legistlative elections that take place this year. About this concluded: “This is not a dollarizing program, It is a program where, to the extent that the weight is recovered, it is successful. If not, no”