In radio statements, the former head of the monetary authority expressed his disagreement with Bausili’s criticism of the inheritance received.
Miguel Pesce He left his position at the Central Bank after four years and referred to the main problems that concern Argentines. Hours before his place is taken Santiago Bausili, He spoke about the leliqs, the Fixed deadlines and inflation.
In dialogue with the program “Toma y Daca” the former head of the monetary authority expressed his disagreement with Bausili’s criticism of his management: “I do not agree with Bausili’s statements. The worst inheritance of democracy was received by Raúl Alfonsín. The second worst inheritance was the one that Duhalde had to face. They cannot be compared to the current circumstance. And the perspective is different too.”
At the same time, he maintained that it is “impossible” that there is no Central Bank and explained the role it plays in the economy: “Sometimes in electoral campaigns, to get the message across in a forceful way, statements are used that in the exercise of power can “have another character. In the most conservative point of view, the most important thing is that money is not issued for the public sector, but that does not mean that there is no Central Bank.”
Miguel Pesce: what he said about his policy to lower inflation
For the former head of the BCRA, a “restrictive” policy to lower inflation can have “social costs that cannot be borne by the political system” and he warned: “you have to be very careful. The shocks in Argentina are very dangerous. No “There is no room or need for a shock.”
At the same time, he acknowledged: “The results that were wanted on the inflationary issue were not obtained.”
“It is one thing to lower inflation in Europe or in the United Kingdom by increasing the interest rate and lowering the level of activity and another thing is to do that in Argentina where we have very high levels of poverty” and he added: “the restriction that Argentina has “To grow it is not in the labor market, we have the restriction in the energy and external sector and if it had not been for the drought this year we would have been able to grow with greater dynamism.”
Central Bank BCRA_Petunchi
Ignacio Petunchi
Leliqs and the correlation in fixed deadlines: what Pesce said
“Behind the leliqs are the fixed terms of the economy and the financial system has had difficulties in transforming Argentines’ savings into growth. What the Central Bank has done with the leliqs is to prevent a sharp drop in the interest rate and to ensure that the savings of Argentines and companies are not devalued,” explained Miguel Pesce.
“They are not a bomb. They are an opportunity for Argentina and that value must be preserved, it must not be liquefied. It must be converted into investment and financing.”
“The new government is going to need financing. Treasury financing through the peso market has been growing steadily. We have managed to make banks gain confidence. The Central Bank has guaranteed the liquidity of these elements.”
Source: Ambito
