Moderated by directors Jorge Carrera and Pablo Carreras Mayer, Sachs referred to the need to immediately end the context of confrontation that exists between the main Western capitalist powers, China and Russia, to develop policies aimed at moderating the impact of climate change.
The American professor stated that after the Covid19 pandemic and Russia’s invasion of Ukraine, the world is facing “to the first stagflation in 40 years” which, he considers, has characteristics similar to those of the crisis of the late 70s and early 80s. “They were not easy years for Argentina, in fact, they were years of hyperinflation”, he pointed out.
Sachs assured that Argentina’s problem due to its lack of access to credit is related to its history of defaults and defaults more than its fundamentals. “Argentina is its reputation, not its reality,” he emphasized. He said if Wall Street investors “If they saw the fiscal balance sheets of the Federal government of the United States and that of Argentina, they would prefer that of Argentina”. Therefore, he considered that the lack of credit for Argentina “It’s a market failure.”
“If they took out the name of the financial instruments and put their balance sheet there would only be a big yawn, everything normal,” he said.. For the North American analyst, there remains a risk of an anti-fulfilled prophecy in the markets regarding emerging countriesby explaining that they look risky because they do not receive financing and in turn do not receive credits because they look risky. “Because they expect the worst, they get the worst,” Sachs said.
The economist was extremely critical of the foreign policy of the United States government, both that of Donald Trump and Joe Biden, whom he accuses of having tried to expand NATO to Eastern Europe, which was decoded by Russia as aggression. . Moreover, he maintains that for more than 14 years the United States began a policy of “containment” of China aimed at impeding the growth of that Asian nation.
Meanwhile, Luiz Pereira Da Silva, Deputy Director General of the Basel Bank for International Settlements, warned that the world is at risk of entering a stage of high inflation “for a long time.” That is why he considered that the central banks of the Latin American region have to be “tough” and tackle the problem of rising prices with “great and forceful determination”. Pereira Da Silva stated that inflation “is the most unfair tax that affects the poorest.” The Brazilian official stated that under the premise of maintaining the stability of the economy and attacking inequality problems, it is necessary to apply “targeted transfers” to the sectors that are needed, in coordination with other actors in society.
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.
