The former Minister of Economy, Sunday Cavallo reappeared after the photo with Luciano Laspina and questioned the way in which Javier Milei explains dollarization. Also, he sent a message to Patricia Bullrich about how to approach the campaign strategy.
The former minister of Carlos Menem and the Alliance, pointed out that the libertarian He is wrong to explain all the details of his dollarization plan “as if he were an economics professor.”
“You can’t discuss it on television. It seems to me that Milei makes a serious mistake, in my opinion, even though I appreciate it,” Cavallo warned in dialogue with TN. “She is dedicated to acting like a professor of economicswhere he tries to explain the details of each of the things he is going to do, how he is going to do them, when he is going to do them,” he noted.
On the other hand, he also pointed out the position that Milei has when it comes to defending his ideas: “He should have a less aggressive and insulting speech for the rest of the leaders. I’m not saying to stop talking about political caste, because in reality he is right, there are very bad politicians who seek positions only to enrich themselves and many times they access positions for which they are not prepared in any way,” he said.
At the same time, he remarked: “He has to think that if he is President he will have to get support. Now, the biggest discussion is taking place between JxC and Milei, when more or less they head in the same direction in matters of economic organization.”
Asked if market dollarization could be established on the first day of government as Milei proposes, Cavallo responded: “It depends on the circumstances that will arise when the exchange market is unified and liberalized.. At that moment, it is time to be in a position to seek a strong stabilization of the economy as with the convertibility plan.”
However, he was reluctant to the idea of this happening in the first months, but instead predicted that it could happen “more than a year and a half from now if things are done well.” “In a non-traumatic process.”
Likewise, he considered that the stocks should be lifted. “I would lift all restrictions on non-commercial transactions. It’s ridiculous what’s happening now. There is an exchange rate linked to commercial operations, and also a lot of stocks or control over other types of currencies and a total one for repatriation of capital… As long as that exists, it is impossible to think that capital will come to Argentina.
In another order, the former official pointed to the errors of the campaign team of Patricia Bullrich. “It is also a serious mistake for Bullrich to concentrate all the effort, through the Melconian preaching and his team, in disconcerting Milei about the issue of dollarization yes or no, and saying that a bimonetary system is better”.
Cavallo considered that it would be a priority to first move towards a bimonetary system instead of a dollarization and then, with the stabilized exchange rate and free, the future government could venture to think about completely dollarizing.
“The natural thing is to move towards a bimonetary system. For the same reasons that progress had to be made in Ecuador, and for the same reason that Peru had to do so, presided over by a hyperinflation“, said the economist and clarified: “The bimonetary system “It has to incorporate two fundamental ingredients.”
He explained that for two currencies to coexist “the exchange market has to be unified and be free.” “In these conditions so that the weight can compete with the dollar and if there is demand, there will have to be a very strict fiscal policy and very, very good management.”
“If they do that, it is likely that they will achieve a result like that of Peru., where the exchange rate was stabilized and there was no devaluation in the national currency,” he recalled, naming the example of bimonetarism implemented in Peru. “This way the economy will function as a semi-dollarized one,” he concluded.
Source: Ambito
