Part of the debate revolved around the economic model on which the Government relies to apply programs such as the Prices Carehoping that it will have an effect on inflation expectations.
“We think of a global coordination model, known in the literature and applied in many countries that have managed to reduce inflation without having to establish monetary regimes that involve abandoning their currency (in reference to policies such as convertibility in Argentina)”, Guzman stated.
“The economic agents, who have other agents as suppliers and clients, look at what the rest does when it comes to defining prices. If we all expect costs to rise by 30, we will probably have a price decision in line with that expectation. that the balance is ‘better’, economic policy is fundamental; if there are no reserves and we do not have a set of situations that make us expect exchange rate instability, the effectiveness of price and income policies to anchor expectations is going to be very low”, deepened.
Tetaz stated that the explanation did not answer the question. “I didn’t ask you how an inflation expectations program works, I asked you about careful prices,” he said excitedly.
“There was a question about what is the model to evaluate price and income policies. Prices Care is a price policy”countered the head of the Economy portfolio.
Next, the deputy emphatically demanded to know an exact number about the increase he will have in the rates of public services 10% of the population with the highest income, which will no longer receive subsidies, in accordance with the provisions of the memorandum with the IMF.
“What is proposed is that the subsidy is removed, therefore the impact depends on the cost of energy. It is not difficult for us to give a number, but I do not have the crystal ball to know how much LNG will be on June 1 , when the segmentation is executed. It asks me a question that is not relevant today”Guzman replied.
Source: Ambito
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