Javier Milei, the candidate with the most votes last coming, stated on more than one occasion his intention to close the Central Bank. What would it mean to take such a measure?
The primary elections were held last Sunday. Simultaneous and Compulsory Open Primary (PASO), in which the candidates who will compete on October 22 in the general elections were chosen. In the same, javier milei was positioned as the most voted candidate. The leader of Freedom Advances has a particular proposal regarding the central bank (BCRA). Find out what function that entity fulfills and what the measure would imply.
What is the Central Bank?
A central bank is a public entity who is responsible for executing the monetary politics and manage currency of a nation, or group of them, and supervise the money supply.
Among the main functions of central banks, among others, we can highlight the regulation of fiduciary circulation and the interbank market supervision. That is, it is, for example, an entity that takes decisions to intervene when necessaryboth to defend the value of the Treasury debt and to order the financial market for currencies.
There is few countries in the world that they do not have their central bank. Among them are AndorraFederated States of micronesia, Marshall Islands, Kiribati, Republic of Nauru and Panamaamong others.
What does Javier Milei propose in relation to the Central Bank?
On several occasions, the candidate for Freedom Advances, javier mileiHe maintained that one of his proposals implied the closure of the Central Bank. In television statements he stated that “the Central Bank must be closed because it is a fraud mechanism that favors the political caste”.
Said proposal, in addition to permeating a deep discontent with the current economic situation of the country, is mounted on the criticism that historically impacted mainly said entity: your degree of autonomy. In this sense, the liberal leader and other opposition leaders spoke.
According to various economists, the Central Bank is an instrument of politicians who allows public spending to be financed through monetary issue. Thus, it is accused central bank if it had been complicit in excessive public spending of successive governments. Undoubtedly, it is a controversy that, although it has been accentuated in recent years as a result of the emergence of some economists who have expressed this position in the media, has always marked the life of the Central and which now bears the most voted candidate in the primary elections for the Argentines.
Source: Ambito
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