The economist recognized advances in the exchange rate policy, but remarked that fiscal balance is not enough. He claimed incentives for production and an urgent reduction in tax pressure.
Carlos Melconianformer president of the Bank Nation and economic reference of the opposition during the last elections, analyzed the new course adopted by the government of Javier Milei In exchange matters. The economist praised the change of strategy regarding the dollar, although he warned that The libertarian model needs additional measures – specially, a tax decline – to consolidate in the long term.
Melconian considered positive the end of the scheme of “Crawling Peg” “That allowed an administered devaluation of the peso,” and valued that the government has decided to allow greater exchange flexibility. “We are better than before flying. But do not ask the flying of everything for next month,” he said, underline that it is a process and not an instant solution.
The economist also referred to the financial support of the International Monetary Fund, which was key to release the stocks and oxygenate the reserves of the Central Bank. In that sense, he interpreted that the loan granted implies a sign of political trust: “It’s like saying ‘I trust that when you start paying, you have the money.’ That means that they believe this works,” he explained. However, he warned that this financing does not replace the genuine generation of foreign exchange: “You have to sell shoes, not get credit for the shoe store.”
“The fiscal balance is necessary, but not enough”
Although Melconian highlighted the government’s commitment to fiscal discipline, he warned about what he called “ultra -fiscalist dogmatism.” “I do not share the idea that having a fiscal surplus guarantees the rest. It is not enough,” he said. And he added that, in this context, Luis Caputo —The Minister of Economy – had to apply complementary measures such as the transitory decline of withholdings to encourage exports. “That is also part of the model. It’s not just adjustment,” he said.
Within that framework, Melconian considered it essential to advance with a reduction in tax pressure so that the economy gains competitiveness. “You have to lower taxes. But, it doesn’t give,” he said. For the economist, the economic model promoted by Milei requires complementing the adjustment of the State with concrete incentives to the private sector. “It’s not just about closing accounts, but generating an environment where it is worth producing,” he said.
A prolonged effort that exceeds a single management
Melconian closed his analysis with a warning about change times. He said that stabilizing the exchange rate, reducing inflation and recovering confidence in weight will demand several years, even beyond the current mandate. “This takes time. In Chile or Uruguay it took decades to lower inflation and achieve stability. Here it will also be so,” he explained.
In dialogue with the La Look program, the economist sought to put the progress made so far by the Government, but also warned that the consolidation of the libertarian model will not be automatic or exempt from risks. “It is not enough with the surplus. A comprehensive strategy is needed, which thinks of taxes, exports, investment and employment,” he concluded.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
