In his opinion, “there are two signs that have already been given: the rise in interest rates and the unification of the Ministry of Economy, which unifies economic policy. That made the market respond well, at least initially.”
“Now, the next signals should be a definition of the exchange rate and the stocks, since the reserves are exhausted and dollars must be obtained in some way. And the other signal should be the fiscal one, since reducing it is the mother of all the battles. It is that there has to be a fairly solid fiscal program to be able to specify the adjustments that must be made,” he emphasized.
In dialogue with Esta Mañana, the program hosted by Pablo Rossi on Radio Rivadavia, the specialist considered that in the short term “the three fundamental problems” of the Argentine economy are: how to finance the deficit, how to sustain the exchange rate and how to pay the debt.
In addition, Spotorno also pointed out that any exchange rate stabilization program “needs dollars yes or yes,” and that will be, he said, one of the great challenges for Massa in his first days in the Palacio de Hacienda.
Regarding the stocks, the economist pointed out that it is an instrument that is “exhausted”, because “there is inflation as if it were being eliminated, but without the benefits of doing that.”
“In the very short term, there is no other option but to maintain the stocks, but in the medium term you have to think about how to get out. You have to set a time limit, because the stocks make you lose reserves,” he concluded.
Source: Ambito
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