“This government cannot implement a stabilization plan because when the economy is organized as it has been after 2002 onwards, especially in the last decade, it is very difficult,” he said in dialogue with Radio Miter.
The former Minister of Economy, Sunday Horse, criticized the policies of the current holder of that portfolio, Sergio Massawhich he described as “mistakes” and said that the minister can wait “avoid the inflationary explosion”.
The ex-minister said that the Government should appeal to “try to avoid an inflationary explosion”: “It is the only thing that Massa can aspire to at this point and with the very little confidence that this government inspires”, affirmed the economist.
“This government cannot implement a stabilization plan because when the economy is organized as it has been after 2002 onwards, especially in the last decade, it is very difficult,” he said in dialogue with Radio Miter.
Cavallo also pointed against the lack of freedoms within the market and against state intervention and pointed against Massa’s decisions and warned that it was a mistake to ensure that inflation would drop to 3% in mid-April: “The best they can hope for if they don’t continue making the mistakes of the past between now and the end of the year is inflation of no less than 6% per month.”
The former minister maintained that it is necessary for the economy to be organized “on the basis of free markets” and he expressed hope that in the October elections there will be a change to advance in this direction.
“Only when the government changes with ideas of a free economy for private activity and controlled for public activity, when there is no State interference in all that is the operation of the markets, Only then will it be able to stabilize,” he declared.
Finally, he made a suggestion to the government: “What it could do and that would facilitate the transition towards a better organization of the economy is simplify the operation of the exchange system. For example, this thing that there are now a lot of different exchange rates for the commercial market. Well, they would have to unify that, there would have to be a single commercial exchange rate. And regarding the non-commercial exchange rates, those that apply to transfers, tourism and financial issues, there are also several exchange rates, even with a large intervention by the Central Bank, which makes it totally unpredictable. They should let it work free market”.
Source: Ambito
