In that sense, he commented that the Executive Power “tried –under the agreement with the International Monetary Fund (IMF)– reduce inflation in a context where it had to increase rates and depreciate the peso faster. And he chose a more austere fiscal and monetary policy that he is not delivering.”
“So the question is what are they going to do later, because before the rise in inflation they increased spending, regardless of whether or not it can be justified in view of the need of the people. But the fiscal program is not going to be fulfilled this way,” Artana emphasized, in statements to the program This morningwhich is issued by Radio Rivadavia.
The economist also questioned the “short-term populism” that the Government “did in much of 2021.” “They sat above the rates, the exchange rate and in the second semester, to try to influence the legislative election, they strongly increased the fiscal deficit,” he added.
“All that takes its toll: today We have to raise rates and devalue more strongly. And also, at the moment of wanting to make an anti-inflationary program, the mistakes made begin to hit,” he suggested while considering that the inflation of this first quarter of 2022 “responds to the little party that was sent in the second half of last year “.
As reported by INDEC, the Consumer Price Index was 6% in April and the year-on-year variation climbed to 58%, the highest in 30 years.
Artana stressed that Argentina “has something that drives economic activity on its own, which are super favorable external conditions”but pointed out that “part of the government’s mistake is that the economy was recovering and, then, they increased the demand. That caused a clash with the supply constraint and generated inflation.”
Source: Ambito
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