The former president of the Central Bank called for an “orderly and convergent” fiscal policy and the making of agreements with businessmen and unions
By iProfessional
15/04/2023 – 21,29hs
Martín Redrado, economist, Secretary of Strategic Affairs of the City and former president of the Central Bank, analyzed the economic panorama at the national level: “inflation has a solutionbut not in the way that the government is dealing with it, with price controls, Fair Prices and blaming the Chinese supermarkets.”
In País Adolescente, with Fernando González, on CNN Radio, Redrado established that the inflationary problem is due to having a bad macroeconomic policy. And he advanced: “Inflation moves by steps and can have upward spikes.”
In this sense, he announced that the evolution of the exchange rate “will be key” in the coming months: “Economic policy is a whole, it is like the human body.” He also pointed out that the stagnation of the economy has not been resolved.
Regarding the words of the presidential spokeswoman, Gabriela Cerruti, of blaming the inflation on the war in Ukraine, she stated: “The blame is bad macroeconomic policy, let’s not blame the world.”
In turn, he referred to the lack of “integrity” in the government: “The government has not had a comprehensive program, with simplification of taxes, reduction of withholdings for those who export more, with a program of greater connectivity with the productive sectors and look for new markets in the world”.
Redrado highlighted Milei’s proposals to save the economy
Redrado described as “a simplification of the problem” the initiative of the liberal deputy and presidential candidate, Javier Milei, to dollarize the economy. And he added: “The basis of the problem is fiscal and not monetary.”
Redrado said that inflation is due to the bad macroeconomic policy of the Government
However, he highlighted: “Javier’s proposals are always interesting because he brings up interesting topics to discuss, always in a healthy and professional manner.” At this point he observed that the country has “mega-opportunities” in energy security and proposed: “Argentina can generate a total of 10 billion dollars in energy.”
We need a Central Bank that stops financing the public sector, that stops passing it colored pieces of paper every month
On the other hand, the former president of the Central Bank defended his management at the head of the organization, by leaving “55 billion dollars, in which there was no difference between gross and net reserves.”
And he advocated: “We need a Central Bank that stop funding the public sector, to stop passing him colored pieces of paper every month. Because there are many pesos and few dollars in the economy.”
Lastly, he concluded on the need for an “orderly and convergent” fiscal policy and on reaching agreements with employers and unions.
