The economist maintained that the measures to organize the macroeconomy have been somewhat “crude and excessive.”
The Economist Miguel Angel Broda maintained that The “fiscal and monetary adjustment” that the Government is carrying out “is not sustainable over time” and warned that Javier Milei “does not have a stabilization plan” for the economy.
For the executive director of Miguel Angel Broda y Asociados, the President got the diagnosis right and made progress “awesome” in correcting inherited imbalances.
“The Government has had a correct diagnosis, both of the structural issues and of the macro-cyclical situation. In this second point we have seen and are seeing a substantial reduction in the fiscal deficit, enormous monetary control and a significant reduction in the quasi-fiscal deficit, a collapse of the gaps, an increase in reserves and an important accommodation of relative prices, although not finished. ”, Broda reviewed in an interview with the Modo Fontevecchia program, on Net TV.
“We have never had a real amount of pesos like we have today. The truth is also that we have never had so little credit from the financial system. The average credit to the private sector in Latin America is 54% (of GDP). We have 3.8%,” warned the economist regarding the monetary restriction.
In this regard, he added that “It can be said that the fiscal and monetary adjustment has been somewhat crude and excessive” and considered that this monetary squeeze will lead to a slightly larger recession than should have occurred.
“We have a fiscal and monetary adjustment that when you look forward and try to make a monetary and fiscal program, neither of them are sustainable over time. There are many doubts about sustainability over time”he added.
“Furthermore, on the issue of the structural agenda, progress is minimal. One can say ‘well, parliament doesn’t allow it’, but there is no definition from the Court on the constitutionality or otherwise of the DNU.”Broda said.
Source: Ambito
