In that sense, he assured that the weight “It doesn’t exist as a currency because it doesn’t serve as a savings instrument. So, by not having currency and issuing, a crisis of a run on the peso is going to come.”
Speaking to Radio Rivadavia, Palma Cané disbelieved the official forecast of 60% inflation for this year, understanding that the rise in prices “is already running at 80% today.”
The economist also commented that, worldwide, the central banks “have already defined that the priority is inflation.”
But he clarified that the debate and the next battle that is coming is “inflation versus slowdown” and explained: “When interest rates are raised and liquidity is withdrawn from the financial system, the economy cools down.”
Consequently, he considered that “the fine job is to lower inflation without the inevitable slowdown turning into a recession.”
“I think what to expect is lower global growth and eventually a global recession,” he said.
Source: Ambito
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