The economist warned about the danger of continuing with a “short-term” strategy that seeks to achieve immediate objectives without solving the country’s structural problems.
The economist Carlos Melconian He harshly criticized the government of Javier Milei, which came out to celebrate the slowdown in inflation, to 3.5%. In this regard, he accused them of having short-term measures and warned that the current exchange rate regime and stock control, “they don’t go anymore“.
“We still haven’t won anything. I stand up, I stand up, but we still haven’t won anything,” said the economist about the celebration that the Economic team held after learning that inflation in September was at 3.5% monthly. He also said that “euphoria” can lead to decisions that are not sustainable in the long term.
According to the economist, half of the economy is in negativewith sectors such as the extractive industry and the countryside, which experienced uneven growth. And, although some indicators seem to be improving, There are areas that are still at the base of the “L” in terms of growth.
According to his analysis, during a television interview with TN, there is no complete “U” recovery, because they do not reactivate all sectors at the same time, and even “some sectors have reactivated a little due to credit or the fall in certain prices”but this is not enough to sustain a robust recovery.
Melconian explained that The current challenge is to accompany structural measures with heterodox policies that alleviate the social impact of the reforms. “You cannot launch a stability program without all prices being aligned,” he said.
Regarding the exchange rate, he denied that it had to be devalued, however, he pointed out that for Argentina to achieve stability, it will be necessary to improve its competitiveness and efficiency. According to Melconian, It is not about forcing an immediate appreciation of the exchange ratebut to generate the appropriate conditions for this to happen in a sustainable way.
Melconian also emphasized the need for the government’s economic team to be able to confront the president when the measures are not adequate. “The team has to be encouraged to tell the president, ‘this is not the right thing to do,'” he said.
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Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
