“They were going to dollarize and they didn’t do it, they weren’t going to issue and they did it like crazy… This really has nothing to do with what was said during the campaign”he explained in conversation with Mañana Sylvestre on Radio 10.
“The President does not have much reputation and credibility for his economic plan,” He criticized and added: “There is no need to destroy the level of activity to reduce inflation.”
Giacomini warned against falling in love with a trap
“The clamp in the medium and long term film, on the one hand, is an increasing shortage of dollarstherefore the trend will be: a free dollar that is increasingly more expensive, an ever-widening gap, and pressure on the official exchange policy to be modified and valued,” he said.
For the economist “The other faces will be: a country risk that will stop falling and then rise; an inflation that will have a U-shape, it will go down hand in hand with the recession, it will find a floor that it will not be able to break and then it will reverse and inflation will accelerate again; in activity, a very mediocre level, stagnant at levels of depression or very high recession like the ones we have, with job losses, increased unemployment and a fall in the purchasing power of real wages. That is the “clamp.”
“As time goes by without lifting the restrictions, it is not that time is on your side and what you are doing becomes easier and less expensive. As time goes by without lifting the restrictions, the costs of having them are increasingly higher. The difficulties in lifting them are greater,” complete.
Giacomini and the criticism of the Caputo and Bausili conference
For Giacomini, the Caputo’s press conference was “very harmful“. According to the economist, the country has “4 indicators” that show the seriousness of the situation: “the last month No exports had been settled and no reserves had been accumulated. Second, in the last two months, the exchange rate rose to nominal levels as never before. beating the record of the end of January, with the dollar at 1400Third, the country risk in the last two months went from 1100 to 1500. Finally, the Merval, the shares measured in dollars, fall the last two months“.
Caputo and Bausili.jpeg
However, the co-author of Milei’s books assured that the two government officials “completely ignored“this situation. “At the conference they said they were going to continue doing what the President said they were going to do 3 or 4 months ago, which is a lie,” he explained.
“At this juncture, if you send the President of the Central Bank and the Minister of Economy to give a lecture a Friday at 5pmis to announce background changes to deal with what has been happening for the last two months,” Giacomini said.
Finally, the economist concluded: “They were going to dollarize, but they didn’t. They weren’t going to issue and the Government has issued like crazy.They were not going to control the interest rate and they are constantly fiddling with the interest rate. They were going to lower taxes, they have raised taxes. This really has nothing to do with what was said during the campaign.“.
Source: Ambito
