And he considered that the Government has an economic policy “pro-inflationary, like throwing kerosene on the fire: it shortens the term of the parity, raises the minimum wage in advance, there is a universal minimum wage project.”
“That is an extravagant policy. The GDP per capita is 12% lower than it was ten years ago and we have an annualized inflation rate of 90% in the last three months. That is why it is a situation of enormous complexity, which needs a President willing to get us out of decadence”he emphasized.
In statements to the program “This morning”, which is broadcast on Rivadavia radio, Broda also considered: “To make matters worse, the level of activity stagnated. Argentina is in a program of super expansive fiscal policy when the economy was recovering. We are doing the opposite of what is necessary.”
Despite this scenario, the economist assured that the possibility of hyperinflation “is very low” and added: “Most likely, we will continue to stumble, waiting agonizingly for December 2023.”
In that sense, he estimated: “There is going to be a minefield of magnitude, with highly distorted relative prices.”
Source: Ambito
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