He also added that the spiraling is avoidable but warned that “we must be careful because the moments of the fragile economy, and in Argentina the economy is fragile.”
However, he vindicated the management of the Minister of Economy, Sergio Massa, although he pointed out limitations: “Massa arrived in August and stabilized the instability, but ran out of fuel. If you add political instability to that.” And he added that “he has to say how he wants to continue”: He has the fiscal deficit in a conflict and therefore he has the inflation rate in a conflict and therefore he has what you do to finance, the bonds, the leliq… But if you want to discuss and reassure the economic transition and reach a successful conclusion, the statesmen must get together and say ‘we are going to find a solution for the transition, not like in 2019 and 2015′”.
“I don’t call it a priceless bomb, not because I’m not going to drop it but because it’s payable and may not be a bomb. What the government cannot do is continue as it continues, because water continues to enter the canoe,” Melconian stressed in dialogue with LN+.
“The commitments must be honored. The irresponsible people who voted for the default 20 years ago complicated the lives of those who are 21 today. Any decision that is made now, not to prosecute it, but due to malpractice, compromises generations,” he added and proposed an agreement between those who seek the presidency: “The four or five guys who want to be president have to have the patriotism and the responsibility of knowing that any measure they take doesn’t screw up next Monday, next month or next year, but rather the next 20 years.”
Although he stressed the sustainability of the debt and responded to the request of the Vice Minister of Economy, Gabriel Rubinstein, to “collaborate” by saying that they are not going to default on the debt, he retorted: “The debt must be honored, but you will close the faucet”.
“Spending continues unfinanced since the 2000s. They went mambo and it could never be financed again except with external, internal debt or inflation,” he concluded.
Inflation
The former president of Banco Nación remarked that lowering inflation is possible, but “for Argentina it is not easy”: “There were 10 stable years and 70 unstable ones. ‘This is a weird country’ an alien would say. It’s not easy, can you? absolutely”.
“It is possible but you have to have certain discipline, in a journey that will be the juncture, the preparation and the launch. It is not that tomorrow I come and in 100 days or hours I fix it. You are going to need credibility, trust. Here you have to build a horizon, trust, that the money that is ‘hidden’ from the ‘claw’, is put into circulation. It pays zero, you have to make it pay “, she added about a possible strategy to follow.
However, he was against an adjustment program: “You have to go to a program that is not an adjustment, this today is an adjustment. You have to go to a program that revitalizes. The economy, not all, but part of it is a positive expectation of the young, the veteran, everyone. It is not that on December 11 you start to build it. On December 10 in the morning there will be no magic show, where on January 24 inflation collapses. It is necessary to adapt all the imbalances, not only of this Government. You have to put together that whole scenario. Relative prices have to be accommodated. Things have to be worth what they are worth, wage demand has to explode in a good way, investment has to come.”
Source: Ambito
