The economist also believes that the target of a monthly inflation of 1.4% is unrealistic under current conditions. He advocated a more gradual correction of relative prices.
The economist Carlos Melconian warned this Tuesday on the government’s “fiscal dogmatism” and considered that this orientation by itself does not guarantee the generation of dollars that the Argentine economy needs.
Consequently, he argued that the foreign exchange market scheme is not sustainable under current conditions. He also assessed that inflation will not fall to 1.4%, the percentage necessary to meet the official projection of an 18% price increase in 2025.
Speaking to Radio Rivadavia, Melconian He insisted that the economic program of Javier Milei’s government is “weak” and shows “inconsistencies.”
Carlos Melconian questioned the Government’s economic plan
“My ideological concern is that there is an excessive commitment to dogmatic fiscalism: if I have the surplus I have planned, they will ‘spit’ the dollars at me and then I will forget about the external restriction. That is where I see the inconsistency,” explained the economist.
He added that “the dollars for purchase (by the BCRA) are excessively dependent on foreign trade” and estimated that “foreign exchange trade (80% of exports and payment of imports) does not give US$20,000 million even if we ‘suck’ next year.”
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Argentinian News
The economist said that the settlement scheme for exports of 80% in the MULC and 20% in the financial dollar is not enough to pay for 100% of imports.
He therefore stressed: “Although it has not been said, the exchange rate controls, the blend and the exchange rate transparency, wrongly called devaluation, are absolutely inconsistent for going through the year 25 as we are.”
On the subject of inflation, he said that he does not see a drop in inflation to 1.4% per month as possible and maintained that “it is more important that relative prices continue to correct themselves and that inflation remains at 3% for a longer period of time than at 1% and that the correction of relative prices is postponed.”
Source: Ambito
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