“You need a shock program and this government has no margin. There is no one to finance gradualism and at this nominal level, you cannot correct the distortion of relative prices step by step,” he warned in journalistic statements.
shock
The professional explained that a central issue is how “that redistributive shock that such a strategy implies is managed politically. Withholdings are a tool that if you devalue you need to implement, because you have to close fiscally.”
But he pointed out that in addition “Reforms are needed to give the economy competitiveness because retentions are just another short-term tool. An agenda of structural reforms is needed, then.”
Dal Poggetto believes that reconciling the reality of the different sectors in Argentina is not easy: “There are those with high productivity and sectors with low productivity. For that, politics is needed.”
He explained that “political consensus is required and not only to say that there is a lack of fiscal balance. We must agree on how to achieve it. Argentina wants to have the expense of Sweden and the taxes of Paraguay.”
Debt
On the other hand, Dal Poggetto commented that one of the problems was caused because Alberto Fernández “changed the indexation formula, delayed the negotiation of the debt with private parties, made a mistake with the management of the debt in pesos, which was two thirds in the hands of the Pimco and Templeton funds, when the bonds were worth 30 cents.
He also considered an error “not having negotiated with the IMF from the start. There were errors in the management of economic policy.”
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
