The three professionals spoke within the framework of the Pre Congress of the Argentine Institute of Finance Executives (IAEF) that took place in Córdoba.
Mondino argued that it is necessary “an orderly dollarization of the economy requires flexibility and deregulation.”
“Dollarization is like saying ‘I’ll cut off your leg but you’ll live’. We are not willing to analyze other options to avoid the irreversible”, added the CEMA economist.
Mondino said that “Argentina spends a lot and badly, and has a careless system” and added that “if we do not modify the roots of the problems, there is no dollarization worth”.
Furthermore, he considered that “If we were modifying spending, if we were giving productivity, dollarization would not be necessary.”
On your side, Benitez, chief economist of MegaQM, said that “Argentina’s inflation levels have been a sustained record in the last 15 years of 34%”.
He analyzed that dollarizing implies choosing “a path of shock instead of a gradual one to order the economy” but emphasized that “both have in common the need for an orderly fiscal scheme, an accompanying monetary policy and the need for consensus”.
Benítez warned that “dollarization requires a comprehensive plan with objectives that are met” and requires “a transition scheme in which the adjustment is not so high.”
“It has to be clear that dollarization is not reversible and that there is a loss of freedom to face, for example, external shocks that may occur”he clarified..
On your side, Romano ruled out that Argentina can carry out a dollarization because “a lot of trust is required” and said that it is “unfeasible to carry it out in an Argentina without confidence and because there are not enough reserves.”
“A dollarization process, if it is done, must be accompanied by other measures and reforms in the fiscal, commercial and banking spheres so that the regime can be sustained over time,” he stated.
On the other hand, he said that “in 87 years of creation of the Central Bank we had only seven years of single-digit inflation” and He clarified that “bimonetarism has nothing to do with dollarization, which is exactly the opposite.”
Source: Ambito
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