The economist emphasizes that the bi-monetary scheme must persuade those who own dollars to gradually reintroduce them into the financial system.
the candidate Patricia Bullrich and his economic team they have begun to outline their approach to the crisis, should they win the elections. Rodolfo Santangelowho is also one of Carlos Melconian’s key partners at the consulting firm M&S, has shared some details of the plan that both are developing. Santangelo revealed that, the day after the first electoral round, they will be attentive to the results and the behavior of the official dollar.
Both Melconian and Santangelo agree on their preference for the bimonetarism above the dollarization. They consider that it is crucial to institutionalize this coexistence of currencies that have the peso and the dollar in Argentina. Both consider that “Argentina is already bi-monetary“, and they advocate implementing incentives that promote a capital market in dollars, allowing the flow of credit and local investment, both for large and small companies and investors.
In short, his vision points to a stabilization of the economy under a bi-monetary system that addresses the current complexities. Santangelo, made an in-depth analysis of the current economic situation. According to his calculations, the devaluation that took place in the August-September two-month period amounted to 27%, while inflation during that period it is expected to be around 25%.
dollarization vs. bimonetarism
In a radio interview, spoke out against the idea of dollarizationopting instead to endorse an approach bi-monetary. This position is shared with Patricia Bullrich, candidate for the presidency and similar to his perspective. Within the framework of this proposal, the economist emphasized that the scheme bi-monetary must persuade those who they own dollars to gradually reintroduce them into the economic system. However, he highlighted the need to strengthen the peso as local currencysince it considers that leaving it without a solid backing could lead to dangerous hyperinflation.
The economist warned about the implications of making hasty monetary decisions, especially when the Central Bank has many liabilities and few assets. Allowing the peso to compete in an unfavorable context could result in its devaluation and deterioration. Santangelo stressed that there are more than $30 billion circulating in the economy and called for caution in not leaving the peso unprotected, as the consequences could be harmful.
Detailing the concept of bimonetarism, Santangelo explained that it involves gradually convincing holders of dollars to reintroduce their capital into the economy, while safeguarding and stabilizing the peso. For him, this balance is essential to avoid hyperinflation, that could arise if the weight is left to its own devices.
Source: Ambito
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