“If the problem of any economic reactivation was 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 stressed in dialogue with Radio con Vos.
Álvarez Agis insisted that an increase in social plans and a reduction in the fiscal deficit cannot be demanded at the same time, since they are elements that oppose each other, which generates a dilemma in which every government, “the next and those who come”, will have to choose how to proceed.
Regarding the possibility that Argentina enters into a hyperinflationary process with spiraling prices, Álvarez Agis indicated that he is closely following some “10 points” through which he checks if the economy may suffer a price spiral, and warned: “Two or three appeared that were not there six months ago”.
The economist warned that “we are going to enter an area where the water covered us” when “they ask in three months if triple-digit inflation can be conceptually called ‘high inflation’.” Despite this, he indicated that the current context “does not necessarily lead to a spiralization.” And he clarified: “I probably won’t.”
In addition, he stressed that lowering inflation should be objective number “one, two and three” of the Government and insisted that focusing the axis of public policies on this “is not orthodox or neoliberal, but rather the best policy that can be done to lower poverty”.
In this line, he focused on the rise in food prices, one of the sectors that saw the most increases in recent months; and considered it necessary “to discuss a measure that guarantees that the food does not go to an impossible place (to pay)”.
“If necessary, some reserves must be sacrificed,” he proposed, and mentioned as possibilities “raise withholdings, close exports or set quotas.”
Source: Ambito
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