“The price freeze increases the expected rate of inflation, that affects the remarking decisions of merchants, industrialists. In the short term, it also affects the amount of pesos that people want to have. The first consequence of the freeze and the silver plan is that the expected rate of inflation rises, “he assessed.
In that sense, he said that “Inflation is going up and people want to have less real resources in this second currency that Argentina has, called the peso.”
In radio statements, Broda severely questioned the new Secretary of Internal Trade, Roberto Feletti, for seeking the price freeze of more than 1,200 products for three months.
“Feletti is a member of the most radicalized strand of statist heterodoxy. The least radical is (Martín) Guzmán, he is not Feletti. The price freeze is a desperate measure,” he emphasized.
In addition, he said: “It is difficult to find such a disorderly economic team. The minister is trying to convince the Monetary Fund that less fiscal adjustment must be made at the same time that there is a price freeze. It is very difficult for us to do well with this. quality of Government “.
“We have had bad governments with economic teams with wrong ideas, but with some weight. But like this Government with wrong ideas, with a declining weight and where the Minister of Economy finds out from the newspapers that there is a price freeze, never. It is a ruling coalition problem, “he complained.
In his opinion: “The most heterodox and radicalized slope leads us to a crisis of magnitude, like the two hyper and the post-convertibility crisis. This extremely radicalized position is a very important risk that complicates the necessary agreement with the IMF.”
According to Broda: “Two mediocre years of extremely high inflation are coming. But (with an agreement with the IMF) we will probably avoid a very strong macroeconomic crisis.”
“The agreement with the Fund can give us a certain fiscal, monetary and exchange consistency, get us out of this program of the
we are seeing. The agreement can undoubtedly help our near future, but not to get out of the decline, not to get out of inflation “, evaluated the economist.
And he concluded: “Argentina is outside the globe. Restoring trust is a process of several governments, all with the same direction: to be normal.”
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