The Economist Alfonso Prat-Gay analyzed the Economic politics of the Government of Javier Milei and left a key warning for the president, Javier Milei. “You are going to need to give good news,” said the former minister during the administration of Mauricio Macri.
Prat Gay highlighted that announcing in the coming months the departure of exchange rate It could serve the ruling party to generate confidence and enthusiasm in its voters.
The former official left criticism and praise for some of Milei’s measures. However, he considered that he should give “some good news”, such as leaving the stocks, before May 25 because otherwise “I could have problems.”
Alfonso Prat Gay: the diagnosis for the coming months
“You must get out of the trap as quickly as possible. and the Government does well to be prudent and not get confused, he pointed out. “These next two or three months look like they are going to be very hard and that is why they are going to need to give good news,” he added.
As an example, Prat Gay recalled the press conference he gave in December 2015 when he announced the release of the stocks at the beginning of Macri’s mandate. “We broke the news with joy and people received it that way.”. This is how it could be interpreted now. Getting rid of the exchange rate trap can be a very good thing for everyone and for the Government, she insisted. The sooner the better, although I understand that there are discussions. The Fund does not want her to hurry, but Milei said in the campaign that she already had everything closed so that they would give her so many billions of dollars, but she did not get them yet. The fragility is there“, he claimed.
“The depth of the recession, the fall in wages, the increase in rates is much more painful than in the Macri government,” explained the former minister. If they do not offer good news before May 25 I’m worried that the government is in trouble.”, he highlighted.
Finally, he stressed that Milei’s victory in the runoff, where the extremes are polarized, was due to the fact that “society became fed up with the previous model, which took mismanagement to an extreme”. However, he emphasized that although he decisively won the second round for now “society gave him the mandate for change, but not the tools to carry it out.”
Source: Ambito
