The Economist Carlos Melconian spoke about him economic direction of the current government and said that the recorded inflation In the first months of the management of Javier Milei should consolidate into single digits shortly.
For Melconianthe Government is now “in a emergency period” and considered that “we are facing a cultural changewhere the emblem is that the fiscal deficit “You cannot have more or you cannot issue more and you cannot take on more debt.” According to his vision, it is “a positive cultural change, which will be consolidated if it goes well.”
He explained, within the framework of a television program, that The dollar at $800 with which the current government started meant that inflation was not lower and considered that “a first stage” of the economic project is ending.
The beginning of a new stage, according to Melconian
However, Melconian anticipated that there will surely be another stage “of high inflation as well,” although, given the price escalation that has been seen so far, which has accumulated 57% between December and February, he opined that ““we would have to start thinking about a monthly digit” for this new period in which the “arranging things.”
For the economist, “how politics, laws, monetary sustainability and the exchange rate outcome continue” will be decisive in lowering inflation. Although he also stressed that it will be necessary to see how the tariff issue and fiscal consolidation will influence.
However, he emphasized that “the institutional issue has to be resolved, because we live in democracy.” He stressed that the country has three powers and that we must be cautious when making decisions because he warned that “people punish with their vote.”
There was no other way out than to cut spending
On the other hand, Melconian evaluated the adjustment in public accounts carried out by the Government with the famous “Chainsaw Plan” and said that Unión por la Patria should also have done it if it won the elections.
“The way I was I couldn’t continue. Any sensible person who arrived was going to have to modify the things that are being changed. Then we can talk about the direction,” he stated.
Another of the topics that the economist spoke about was the retirement formula. “In pesos, retirements are on the decline. In each particular retiree or in the general retirement mass. The year 2024, its collapse or not, will depend on the amount of additional bonuses that the Government grants,” he said. Since he considered that The continuity of the previous retirement formula and inflation will continue to make pensions fall.
And he added that changing the formula today would avoid an unpayable explosion of public funds. “The formula that is in motion now or the one that comes, with this inflation, none of them can hold up. It will depend on the palliatives that the Government provides,” Melconian sanctioned.
Source: Ambito
