The candidate for president of Together for Change, Patricia Bullrichwill meet this Wednesday with the American economist, winner of the Nobel of Economy 2011, Tom Sargentprocess specialist inflation.
Bullrich will hold this meeting while defining his economic team, which will be led by Carlos Melconianformer civil servant Mauricio Macri in it National Bank.
As anticipated from the bullrichista team, sergeant “He is a specialist in processes of inflation“and he already met the candidate during her visit to the USA, in April 2022.
What Tom Sargent proposes to end inflation
PhD in Economics from the Harvard Universitywon the award Nobel Prize in Economics in 2011 next to Christopher Sims for his research on cause-effect relationships in the functioning of the economy.
Bullrich already met with the specialist on a tour that he made for USA in which he talked about Zoom accompanied by two of his advisors, Juan Pablo Arenaza and Alberto Föhrigcoordinators of their technical teams.
The economist wrote “The end of 4 great inflations” in a publication of National Bureau of Economic Research. There he describes the events of Austria, Hungary, Germany and Polandfour countries where inflation stopped with a shockwithout gradualism, with drastic monetary and fiscal policies.
The first essential measure was the creation of a independent central bankcommitted not to finance the Treasure hand in hand with a change in the existing tax regime.
“In every case that has been studied, once it was widely understood that the government was not going to rely on the central bank for their finances, inflation has ended and the exchange rate has stabilized,” says sergeant.
However, reduce the inflation It is not simple and warns that “it requires regime change: there has to be an abrupt change in government policy, or in the strategy for setting deficits now and in the future that is limiting enough to be broadly credible.” holds sergeant.
Source: Ambito
