This Thursday, workers of the Central Bank (BCRA) and other entities of the Argentine financial system together with the La Bancaria union make a claim at the doors of the monetary regulator, located at Reconquista 266, in the City of Buenos Aires, against the closure that it promises to do if it wins the presidential runoff this Sunday the libertarian candidate Javier Milei.
Under the motto “I defend the Central Bank”the Internal Union Commission of the BCRA called for this mobilization with the support of The Bankthe union that leads Sergio Palazzoand generated a document in which they point out that, “based on the general ignorance of the functions of the Central Bank and our role for the community, the BCRA workers are designated as public enemies and our Institution as the culprit of all the evils, even considering dynamiting, eliminating and closing the Central Bank in the middle of a presidential campaign.
Thus they indicate that “the candidate of La Libertad Avanza (LLA) proposes an ideal world that only exists in his textbooksbooks that are not even the majority consensus of the profession but those of a marginal school that postulates things that have not been applied in any country in the world in the extreme way in which it is proposed.
They warn that Javier Milei’s “idealization” is the product of a simplification of reality armed with totally unrealistic assumptions and a blind trust in the markets and the ability of people to manage individually. They describe this idea as “an economic dream that has never been realityexcept for the wealthiest elite.” And they warn that these positions imply “an abysmal setback in the management of modern economies“.
Are there countries without a central bank?
On the other hand, the document indicates that “No relevant country in the world economy eliminated its Central Bank“And they give as an example that not even Ecuador, which adopted the dollar, went this way. The exceptions they mention are: Panama, Andorra, Monaco, Federated States of Micronesia, Marshall Islands, Islands of Man, Kiribati, Nauru, Tuvalu and Palau , “all countries with an economic structure very different from that of Argentina,” they point out, and explain that, in these countries, the one that fulfills the function of monetary regulation is the central bank of the country where they use the official currency.
They highlight that, “Without a Central Bank, investors and citizens will become more cautious, which would negatively affect investment, consumption and, therefore, economic growth.“. They point out that the existence of these regulators contributes to confidence in financial and economic stability.
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In summary, they propose that a central bank plays a vital role in the management and economic stability and they consider that its elimination exposes citizens to multiple risks, increasing their vulnerability to constant situations of uncertainty that afflict the modern economies.
Finally, they maintain that “At the Central Bank, we are the workers who, day after day, for more than 85 years, do our work with commitment and professionalism to fulfill the functions that our institution has for the community.“. And they affirm that this is why they express their energetic repudiation of the statements that the candidate for President of LLA has repeatedly made about the institution and the work of its employees. Thus, they accuse Milei of “taking advantage of the lack of knowledge that the population” of the role of the BCRA and its workers.
Source: Ambito
