“Politics is confronted with the urgency of a totally skyrocketing rate of inflation, and skyrocketing in a very sensitive place, which is food. If the problem of any economic reactivation were to increase public spending or the problem of any fall in the purchasing power of wages was to increase parities, we would live in a world of absolute happiness and full employment, ”he asserted.
In radio statements with Radio con Vos, he warned about the situation the country is going through added to the international context aggravated by Russia’s invasion of Ukraine, and expressed that “the intuitive solution of increasing wages, increasing social plans, parity and spending can end up being counterproductive because with this speed of inflation it is like driving at 180 kilometers per hour”. “If you make a bad maneuver the economy can derail”, he added concerned.
“Be careful, because we are entering an area that does not necessarily lead to a spiralization – it probably will not lead to hyperinflation – but I also do not want to be asked in three months if triple-digit inflation can be conceptually called ‘high inflation’… already when we were asking ourselves that question the water covered us”, he alerted.
“It is extremely necessary to change the axis and understand that setting objectives 1, 2 and 3 to reduce inflation is not orthodox or neoliberal, it is the best policy you can do to reduce poverty,” he said.
In that sense, Agis proposed two things. In the first place, in relation to food, he stated that to prevent food from going to an impossible place, “if necessary, some reserves must be sacrificed” and “raise withholdings, close exports or set quotas”. Finally, he proposed correcting the internal one in the Front of All to generate greater confidence: “It cannot be that in the Government there are 10 guys who say ‘let’s go north’ and 10 who tell you ‘let’s go south’. That happens with the bidding of prices and salaries, you have a Cristina who says ‘income must be increased’ and a government that says ‘look, I have to increase electricity, gas, the exchange rate, because of the agreement with the IMF’. We have to have a strong, solid and united government that goes to an anti-inflationary policy scheme that is going to have orthodox components but that has to add a heterodox component that is deindexation”he proposed.
Source: Ambito
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