The economist criticized the orthodox view of Javier Milei’s government. “How can it be explained that inflation doubled in 2018?” he said on X.
Amid the rise of the parallel dollar that the Government is unable to tame, criticism from all sectors is growing over the economic situation. The former head of the BCRA, Alejandro Vanoli, questioned the orthodox view that is maintaining Javier Milei and gave him a warning: “Inflation is not just a monetary phenomenon.”
“Inflation is not just a monetary phenomenon. How can we explain the fact that inflation doubled in 2018? Both the Fed and the ECB talk about costs, distributive struggle, supply chains. When the pesos were lacking (2001) the low inflation was not sustained due to the external deficit,” he explained. Vanoli in X.
Luis Caputo detailed phase 2 of the Government: “The gap will tend to collapse”
He Minister of Economy, Luis Caputo, He detailed phase 2 of the Government within the framework of the “zero emission” and expanded on the information about the second part of the economic plan that will begin this Monday: “The gap will tend to collapse.”
In the framework of the second part of the economic plan, Caputo highlighted the decrease in inflation as the main result that would be generated by the reduction of the exchange rate gap: “This whole new monetary scheme reduces inflation. As inflation falls, the gap follows suitso what will end up happening is that contrary to what many think, the settlement rate will tend to converge with the official dollar. This will allow for a much simpler and less traumatic exit from the currency controls for Argentines.”
Cristina Kirchner to Javier Milei: “She will use the BCRA reserves to intervene in the market”
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Cristina Fernandez de Kirchner He used his social networks to refer to the measures that Javier Milei’s Executive will take to carry out phase 2 of the Javier Milei Government.
Through her X account, the former president addressed Javier Milei and He asked him to tell the truth to his libertarian followers:”It will use the BCRA reserves to intervene in the financial dollar market, because the gap with the official dollar is going to the… you know. And this ultimately impacts prices.”
And he added: “Now it is clear that no matter how big the fiscal surplus is (even if it is fake and unsustainable), the central problem of Argentina and its bi-monetary economy, with hyper-indebtedness in hard currency, It is the shortage of dollars“.
Introductory paragraph, second paragraph copy paste of the tweet and two h2 with the measure and what Cristina said for example
Source: Ambito
