In an interview with C5Nthe deputy of Avanza Libertad detailed what are the steps to follow so that Argentina enters into a dollarization of the economy: “From the technical point of view, I believe that dollarization can be the icing on the cake, never the tip of the ball. You have to do a lot of things first.”I consider.
In this way, José Luis Espert stated that in order to achieve dollarization, certain requirements must first be met, which “are the same ones that are needed so that there is no inflation,” he remarked.
“Dollarizing requires a host of other measures, such as going to negotiate with the United States Federal Reserve, being paid the net present value of seigniorage, an offshore account and money laundering”argued the economist.
According to Espert, there must first be “a treasury without a deficit”, pointing to the way in which the Central Bank would be financed to support the currency. “Are you going to issue dollar debt and default permanently?” she argued.
Secondly, he reiterated the need for legislative reforms, especially in labor regulations, for which he insisted that “super flexible labor legislation is needed”.
According to Espert’s analysis, it is also required “an economy open to the world”, which is aimed at international trade and does not create traps or restrictions, especially on imports and financial capital. “All this must be done because there is a system that is malfunctioning,” he justified, at the same time that he reiterated that the currency is the last step to achieve an exit from the economy.
“Attacking weight is attacking the consequence and not the cause of evil, you have to attack the problems that make weight unfeasible”concluded the economist.
Source: Ambito
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