The economist, who is rumored to be Yamandú Orsi’s eventual Minister of Economy, spoke about the economic difficulties that the next government will face.
The economist Gabriel Oddone He gave his opinion on the government’s economic policy and commented that the current one low inflationalthough it is an achievement, it cannot be sustained over time; in addition, he criticized what he called a series of inconsistencies of the Executive and spoke about his possible position in the Ministry of Economy in case that Yamandú Orsi win the presidential elections in October.
“It is an achievement but it is not sustainable over time,” he said in relation to the range of inflation which will be within the target this year and the expectations of economic agents in this regard. However, the economist commented that there is a set of circumstances that have put inflation in the range below 6%.
“One of the most important was the actions of the monetary policy of the Central Bank “That, knowing how things happen in a country like Uruguay and not having had a sufficiently restrictive fiscal policy and at the same time a salary policy that was aligned with a presidential commitment to recover the salary level prior to the pandemic, generated a series of inconsistencies that translates in the country as an appreciation of the real exchange rate,” Oddone explained in relation to the exchange rate lag in dialogue with Informativo Carve.
In this way, the economist explained that today there is a phenomenon of dollar prices deviating from what is a long-term equilibrium. “The very Central Bank “We recognize this and that is a problem to manage. In any case, that has already happened and now we have to deal with how to consolidate this lower inflation rate, which is an achievement for the country,” he said.
Will he be Yamandú Orsi’s Minister of Economy?
The big question is the role that the economist will take within the government of Broad Front (FA)if he wins the elections, generated certain misgivings within the party. However, Oddone specified that he would lead the Ministry of Economy and Finance under certain conditions.
“The conditions are simply whether both parties feel comfortable. The President of the Republic will decide what his political line of action and priorities are. He will put them forward and his Minister of Economy has to evaluate whether he agrees with that and, secondly, whether he feels it useful to do so,” he explained.
In this sense, the FA presidential candidate, Yamandú Orsi, He told the press that his economic intentions are to raise minimum wages and pensions, while the rest should wait to raise their salaries through the CPI.
“Attack the problems of inequality and social cohesion in the Uruguay “They require prioritizing the lower-income population. Therefore, having a salary negotiation that takes this into account becomes fundamental. It is a typical mechanism in which politics, in some way, corrects the market,” he agreed.
Source: Ambito
