The former Minister of Economy Domingo Cavallo reappeared in public during a lunch organized by the Mediterranean Foundationinstitution of which he is an honorary president and who saw him initiate his economic and political career. Although he avoided referring directly to the current situation of the country during his presentation, He ratified his position in favor of a well -designed bimonary regime for Argentinaas an alternative prior to an eventual dollarization.
“Personally I think we should go to a very well designed bimonnetary system. It is not the one that is working now, and dollarization can be something that happens if that scheme does not work,” said Cavallo, by dialogue with journalists after his presentation.
The economist warned that, if under a bimonary scheme The weight continues to lose value and reappears inflationas happened in Ecuador before dollarizing, then the country could move towards a more drastic measure: the adoption of the dollar as official currency.
Although he avoided talking about the economic situation in his formal exhibition, the former minister stressed that The adoption of the dollar as the only currency should not be the starting pointbut a final option in case the bimonary regime fails due to lack of stability of the weight or persistence of inflation.
Technical criticism and distance with the government
Cavallo again marked differences with the ruling party, especially with exchange policy. In his personal blog, he had warned about A real appreciation of weight and advised progressively lift exchange restrictionsstarting with financial. That text, published in February, caused discomfort in the presidential environment and resulted in the departure from his daughter, Sonia Cavallofrom the embassy to the OAS.
More recently, in his last publication, he stressed the need for accumulate reservations to sustain the disinflation process and facilitate the remumination. As he explained, a well -implemented bimonnetary economy requires backup support to live with both currencies without inflationary pressures or exchange uncertainty.
“Many more reservations are needed if the economy is intended to be re -obtained, not only in local currency, but also in dollars,” he warned.
Cavallo was presented by María Pía AstoriPresident of the Mediterranean Foundation, who described him as “a significant thinker” and valued his validity as a technical reference. His participation in the meeting was focused on reflection on monetary models and the necessary conditions for a strategy to function in the long term.
Source: Ambito
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