The economist Juan Carlos de Pablo analyzed the electoral setback of La Libertad advances in the Province of Buenos Airesa fact that impacted fully on the Financial marketsand stated that the ruling party “has to continue acting with the Firefighters hypothesis ”According to the president, the president Javier Milei will not modify the economic strategy focused on the fiscal balance.
In radio dialogue, by Paul commented that The presidential speech had two key points: “On the political level he said ‘we send a phenomenal cagadón’. And the second is that the economic policy understood as fiscal equilibrium does not move. These are the data.”
The specialist also questioned the climate of media tension After the results in Buenos Aires. As he explained, “I was listening to someone who is worried because if populism returns in 2027 they will pardon Cristina (Kirchner) too.”
The role of Javier Milei and the logic of the markets
For De Pablo, the president should not focus on statements but in management: “Milei doesn’t have to talk, he has to work.”
And stressed that, in financial matters, the ruling party “has to Continue acting with the Fire Hypothesis And it is exactly what he is doing ”, that is, Attend Emergencies As they occur.
In that sense, he considered that The government had opted for a positive effect of the election on the calm of the markets. “When they played with an eye last week that if there was a strong electoral component and this choice did well, then things were going to placate. As did not happen, then they decide with the perspective of the firefighters,” he said.
Pablo’s look on the financial reaction
When referring to strong volatility in the day after the elections, the economist said It was a classic panic behavior: “What happened yesterday in the markets is the typical despair, the guy who sells for despair and the other is waiting for him with some liquidity and says ‘do you want to sell for despair? Well, I buy you, but with 15% discount’.”
De Pablo added that time will say who made the right decision: “Some of the two will be right when within 30 days or 10 months review decisions They took yesterday. Today there is no way to know. ”
Factors to be observed and the government horizon
The economist insisted that beyond media noise what really matters are indicators such as Inflation and interest rates. As he explained, the hypotheses about the return of populism do not have an immediate correlation and the central is how economic variables are managed.
Finally, Pablo returned to his main metaphor: “Fire logistics” It was consolidated as the dynamics that was repeated “in recent weeks”.
Then he concluded: “What you have is a situation, a extreme braceletwhere the ruling party trusted to be placated based on another electoral result and now it will have to continue. How long? I don’t know. Now in the middle you have effects. ”
Source: Ambito
