interviewed by Facundo Gómez Minujín, President and Senior Country Officer of JP Morgan for Argentina, Uruguay, Paraguay and Bolivia, insisted on the idea that the cause of inflation is multiple and that in order to control it “The State has to anchor expectations” and stated that in fiscal matters “we must act seriously.”
About, Miguel Blanco, director of Swiss Medical and coordinator of the Business Convergence Forum, pointed out that “we all have a clear diagnosis of the situation, what happens is that what he says is not happening”. “There is great uncertainty because it is not known for which side this fight that they have within the government coalition is going to be defined and it is not clear that the causes of inflation are being attacked. All the measures are to increase spending,” Blanco said. The businessman indicated that “it is very worrying” that the government is endorsing parity with salary increases of up to 85% because he considers that it is contradictory with the idea of anchoring expectations.
Miguel Kiguel, director of the consulting firm Econviews, He argued that the minister’s idea itself is correct since “all the central banks in the world try to do that.” “(Jerome) Powell (head of the Fed) is talking about anchoring expectations and expects US inflation to come down quickly to 3%, which happens to in Argentina it is extremely difficult because this is a government that is hacked by another part of the government and that complicates the credibility of any measure that is announced.” However, the former Finance Secretary said that from the point of view of macroeconomics “at least there is an agreement with the IMF that there was not before.” “They have good objectives but they are very difficult to achieve,” he pointed out when mentioning the Central Bank’s problems in adding international reserves.
For Mario Grinman, head of the Argentine Chamber of Commerce (CAC), Guzmán’s positions “are solid.” “The minister speaks of anchoring expectations, and for that trust is required. The problem is that trust is not being generated from its own space, ”he said. Regarding the fiscal front and the idea of lowering taxes proposed by the opposition, Nisman considered that the recovery “has to be gradual because the State cannot be defunded.”
Martín Genesio, CEO of the energy company AES, I consider that “anchoring inflationary expectations is part of a plan, but I would say it is a small part”. He pointed out that the Economy Minister is “trying to show a plan” but considered that the agreement with the IMF does not constitute one by itself. “It is modifiable and every three months it is being reviewed,” he explained.
Roberto Alexander, the president of Amcham, said at the opening of the meeting that “the situation is not easy” in a context of “controls, social vulnerability and shortage of foreign currency” and considered that “the agreement with the IMF can be a kick start for a state policy.
Daniel De Nigris, CEO of Exxon Mobile, insisted on the need for tax stability for investments. “I think it’s part of the competitive element. The possibility of having fiscal stability is part of the long-term elements”. she pointed out. For its part, Juan Farinat, CEO of Bayer, indicated that “stability is essential to be able to plan” and said that “the situation is something we have to go through.”
Source: Ambito
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