Melconian outlined the president’s recent economic plan, highlighting that it was based on reducing the exchange rate gap through exports and postponing import payments, which generated an accumulation of reserves.
The Economist Carlos Melconian, very critical of the current management, returned to carry out a thorough analysis of the economic situation facing the President’s government Javier Milei. The former candidate for Minister of Economy with the formula of Patricia Bullrich He recommended that the president wipe the slate clean on some issues, stating: “In some things you have to start from scratch. You have to put together an exchange scheme, an adult agenda and Stop bothering the minister (Luis Caputo) with the cepo, which is unremovable ”.
Melconian He also criticized some “exaggerations” economic measures promoted by the president, and explained why he is not worried about the rise of the parallel dollar, assuring that the “stage two” of the Milei administration “does not exist.” Regarding a possible “stage three,” he stated that “they have not even thought about it yet,” he assured during his speech in the Business Community (LN+).
Melconian He outlined the president’s recent economic plan, highlighting that it was based on reducing the exchange rate gap through exports and postponing import payments, which generated an accumulation of reserves. He also mentioned a fiscal cut with tax increases and an adjustment of public spending, describing it as a process of “liquidation, chainsaw and bicycle”.
On exchange rate policy
Regarding the exchange rate policy, Melconian He commented that there were no substantial changes, but criticized a devaluation “above what was needed,” arguing that in an economy like Argentina, this inevitably generates inflation. He dismissed the government’s claims about carrying out the “biggest adjustment in humanity” and avoiding hyperinflation as exaggerated..
On the rise of the parallel dollar, Melconian He argued that changes in its value are a “trap” for governments. He argued that the official dollar is the relevant one in terms of economic activity, although the parallel dollar should not be neglected.
Later in the interview, He criticised Milei for creating unrealistic expectations during the electoral campaign and then going to the opposite extreme. According to Melconianthe “second stage” of reforms “does not exist” and the “third stage” has not even been defined. He stressed the importance of working on changes without generating false expectations or rushing the processes.
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Argentinian News
Asked about how to overcome the current economic situation, Melconian expressed his concern about Milei’s lack of a concrete plan, beyond general concepts of anarcho-capitalism. He stressed the need for sustainability in fiscal policy and criticized the relationship with Congress and tax management.
Despite his criticism, Melconian urged people to be optimistic and adapt to changes: “We must be aware of changes and evolve according to what happens,” he concluded.
Source: Ambito
