Former Deputy Minister of Economy Emmanuel Alvarez Agis He revealed that he is seeking to meet with the father of convertibility, Sunday Cavallo, Considering that it has “much to learn“and noted that the fixed exchange rate program implemented in the 1990s “went well.”
“I’m trying to get together with Cavallobecause it seems to me that from an intellectual point of view it has a lot to teach and I have a lot to learn”he highlighted Alvarez Agis in statements to a streaming channel.
The former official during the management of Axel Kicillof at the Treasury Palace clarified that he “would not vote” for Cavallo if he were a candidate because he does not agree with his political ideas, but he stressed that when applied the conversion box in the government of Carlos Menem “There was not a single economist in Argentina who said that this was an orthodox plan.”
The owner of the PxQ i consultingHe indicated that “Cavallo wrote a thesis in 1978 that invented an economic effect that at the time was ultra-heterodox.”
“When there is high inflation Orthodoxy says that we should issue zero, but that makes rates go up a lot and gets into the investment costs of companies. and companies raise prices,” he explained.
Cavallo’s theses
In this regard, he recalled that “Cavallo said that the interest rate had to be anchored and with convertibility he anchored the interest rate.” “That is to say, he wrote something in 1978 that isI was on edge with what Milton Friedman saidimplemented it and it turned out well.”
However, he pointed out that “what went wrong was that in 1994 we had to leave the emergency program” but indicated that “My economic team sends me what Cavallo publishes.”
Regarding the current policy of Javier Milei, he assured that “although the result is similar what was promised It does not mean that the tools being used are the same” as he promised.
“Inflation has dropped,” admitted the professional, who nevertheless downplayed the importance of zero emissions, but rather that the fiscal anchor is maintained and tariff increases are delayed.
By proposing an imaginary situation, he said that He would not sit down with a colleague who proposed issuing a currency to reactivate Argentina’s economy in the current situation. “If you bomb him and you don’t have dollars, you’re going to screw everyone,” he explained.
In the other case, Nor would he sit down with Milei because, given the need for an adjustment, “he wants the poor and the middle class to pay for it.”
Source: Ambito
