He Business Convergence Forum supported the content of the document “The private sector is key to development”, issued by the Argentine Business Association (AEA), one of the founding entities of the Forum.
The Forum stressed that “the document summarizes the positions on economic matters, social and strengthening of the institutions of the Republic that the Forum has been supporting since its creation in 2014 in documents and communications and highlights the key role of business in the development of Argentina and the generation of genuine employment in the sformal sector of the economy”.
“We hope that these clear concepts be taken into account by the people who have to face the difficult situation in which our country finds itself,” the institution said in a press release.
Entrepreneurs: the vision of the role of the Central Bank and public spending
In a document published in the last few hours, the AEA established its position on what the axes of the next Government should be. Among them he marked a central bank “independent” to stop the monetary issue “spurious” and lower inflation.
Likewise, he considered that the inflation It is a “strictly macroeconomic” problem focused on uncontrolled emissions.
In the chapter intended for “stabilize the economy and balance public accounts”, the businessmen maintain that “the golden rule in strengthening economic institutions consists of consolidate a macroeconomy stable and predictable, whose vital center is the currency legitimacy“.
“This means implementing consistent fiscal and monetary policies. In the tax land, it is essential to balance the traditionally deficit public accounts. For its part, a responsible monetary policy run by an independent Central Bank, must avoid spurious monetary issuance,” they noted.
And they demanded to adopt “targeted measures to reduce the share of public spending in the GDP, which will result in greater efficiency in the use of resources and in the level of general competitiveness of the economy”.
“This, in turn, will help to avoid excessive debt frequently used to cover the current deficits of the State,” they indicated.
Inflation, wages and poverty: the AEA diagnosis
They considered that inflation is “a pstrictly macroeconomic problem“and expressed: “A general increase in prices, sustained over time and in all areas of the economy, is not the result of the specific decision of a few economics agents; but the symptom of serious macroeconomic imbalances that have a widespread and simultaneous impact on all sectors and economic actors.”
“In recent years, the inflation has once again reached extremely serious levels, the consequences of which are suffered first by the most vulnerable sectors, as it causes more poverty and inequality. Additionally, the high inflation It also makes it difficult cooperative relations between links in the value chains, erodes international competitiveness by negatively impacting investment programming and generates conflicts with suppliers, clients and consumers, and between companies and their workers,” they warned.
Furthermore, they said: “International historical experience shows that through macroeconomic policies appropriate it has been possible to maintain inflation rates relatively low in almost all countries in the world (including those in Latin America) in recent years. This evidence has remained even in times of strong cost shocks in the prices of basic inputs or in the period of the recent pandemic”.
Source: Ambito
