Rubinstein would be appointed as Secretary of Economic Programming, that is, the person in charge of macroeconomics, that is, the vice minister
08/05/2022 – 10:02 a.m.
The new Minister of Economy, Sergio Massa, continues to outline who will be his closest collaborators to complete his work team within the National Cabinet. In that sense, he revealed that in the next few hours he would appoint the economist Gabriel Rubstein as his deputy minister.
Friday’s session seems to be important for the formation of the Economic Cabinet, since Massa is expected to complete the team of officials that accompanies him in the Treasury Palace. Then he will focus on establishing the bonus to compensate retirees for high inflation.
For this reason, the new holder of the economic portfolio will also focus on the successor of Dario Martinez at the head of the Energy Secretariat.
The Neuquén leader resigned from his position and in the next few hours it will be known who will be in charge of the process of new segmentation of subsidies to the electricity and gas rates.
In addition, for this Friday it is expected to know who will occupy the Secretaries and Undersecretaries of Knowledge Economy and Economic Programming.
Gabriel Rubinstein, the man who sounds like Sergio Massa’s deputy minister
Who is Gabriel Rubinstein?
Rubinstein is an economist with extensive experience who accompanied Robert Lavagna in the negotiation with the IMF at the beginning of the century and who later became its technical representative at the BCRA.
For some time, the economist, head of GRA Consulting, He has been warning for a long time about the reserves, predicted the critical shortage of reserves that was going to occur from June and projected an annual inflation of 90% in 2022.
He is a technical expert in monetary programming who, for example, said a few days ago on the cable news channel of Grupo Clarín, TN, that if this continues, “There is a risk of hyperinflation.”
For 8 years he was in Duff & Phelpsthe Chicago-based credit rating agency, was executive director in Argentina and a member of the New York-based credit rating committee until the company was sold to its competitor Fitch.
After the mega devaluation of Brazil in 1999, he warned of important risks for the Argentine economy and at that time he joined the local economists who proposed dollarizing. He wrote a book on the subject, entitled “Dollarization, Argentina in the global village”.
In 2004 he was appointed executive director of the Buenos Aires Stock Exchange and in 2006 he created his own consulting firm, Gabriel Rubinstein & Asociados.
How Gabriel Rubinstein thinks
In March of this year, when the possibility of a dollarization of the Argentine economy. In this regard, the economist said that his book “Dollarization, Argentina in the Global Village” was written when “there was a basic idea that dollarization could contribute a lot to avoid default, and avoid a collapse of the economy.” That process finally happened two years later, which was the collapse of convertibility, pesification and the corralito.
Put into context, Rubinstein clarified that “that made sense at the time and in that way“Now to dollarize you have to have reserves, something that there are not today,” he warned. And he added: “Before facing a process of these characteristics, it is necessary to see what objective is being pursued. If what you want is to lower inflation to 5% per year, you don’t need to dollarize.”
“In essence, although it is a guiding rule that can be useful, I don’t see that this is the right time to think about that. All energy must be put into eliminating the fiscal deficit in order to eliminate inflation,” he concluded.
In his view, this is the essential objective at this time because “eliminating the fiscal deficitin a short time you have the possibility of having an inflation like any of the countries have”.