The economist affirmed that he understands that “there is a non-institutional political risk”, but that he does not downplay it, and that “democracy has to find a solution to the economy”.
“There are situations of explosive acceleration, the exchange rate was very low. A minister arrived who made a significant devaluation and the inflation rate exploded in two months -he described-. There are non-explosive accelerations, which is possible: the rate of inflation is slow. In the post-Sigaut period, inflation went from 80% to 130% the following year. If it went from 90% to 140%, is it a crisis? If they tell you that, do they buy? Explosive acceleration is avoidable. This has nothing to do with the crisis of 2001″, Melconian affirmed according to the journalist Gabriela Origlia in the newspaper La Nación.
Melconian stated that the Ieral team is convinced that the recovery “comes through the private sector” and added that what is coming are times of “agreements, first with yours, and then with the rest.” “The lack of trust and credibility we are building now. The proposal must be explicit and clearly explained: ‘We are going to reconstitute a Ministry of Economy’; ‘the minister is a man of the President’, ‘what has to be done is very hard,’” he said.
“The priority condition is to recover the macroeconomy with fiscal balance and a new exchange and monetary scheme,” said Melconian, noting that the “free and floating exchange rate is a point of arrival and not a starting point.”
Melconian projected inflation of between 6 and 7 percent for this month and stressed that it is “incontinuable to keep the dollar official devaluing behind inflation”. “Argentina celebrates a year and a half with negative reserves; deposits in dollars are ´gauchos’; the first adjustment of these deposits occurred in the PASO of 2019 ”, he defined.
“If Argentina had maintained the international insertion of six decades ago, it should be exporting six digits,” he said. The export and what we call ‘import festival’ are rickety data in a rickety and decadent country”. After analyzing all the possible variables to improve the existence of dollars, it was when he pointed out that the IMF “should be discussing ‘Hey, I have an idea… what if you devalue?’”.
Likewise, Melconian listed that “there is an exchange risk, a debt risk in pesos, a fiscal one that must be monitored.” On this point he indicated that it is “nonsense” to promote a universal basic salary. “They haven’t even done the accounts; how with a deficit of $2.5 trillion I am going to spend $1 trillion; it is an internal political fight”, he sentenced.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
