some 170 specialists in Macroeconomics and Finance issued a document in which they openly question and warn against the dollarization plan presented by Javier Miley, one of the greatest promises of the liberal candidate. Could lead to “hyperinflation and collapse”. For this reason, journalist Liliana Franco pointed out that “the last time they did something like this was with INDEC’s intervention.” “It is not often that economists come together to question a campaign promise.”
Criticism of Javier Miley’s dollarization
“What economists suggest is what dollarization means and what are the negative consequences of dollarization.The guest explained. The first result is “Loss of monetary policy freedomThis means that, “In the face of an external shock, Argentina does not have the possibility to use this measure to protect itself,” he noted.
In this sense, the journalist pointed out that. “This has happened with convertibility with the external shocks that Argentina suffered with the tequila crisis, the Asian crisis and Brazil.”
Liliana Franco: “What Miley does brilliantly is give people a sense of stability in their income.” “Historically, a country like ours has run a fiscal deficit for 57 years, with inflation coexisting with us only with convertibility.” “Accurately,”People know that what maintains the value of money for them is the dollar“Miley finds that in order to convert to dollars, he needs dollars,” he explained.
Results of the meeting with investors in the United States
In this context, part of his team traveled to the United States, where “there were meetings with more than 50 investors and… “There was no talk of giving money to Argentina or that three funds would take over the $60,000 in debt that Miley offered. What they told me is that there was no talk of that.”Franco commented. Then he added that the meeting“It was not very satisfactory for investors” who wanted more detail About the measures that the liberal candidate wants to implement.
Finally, the journalist stated:Dario Epstein, Juan Napoli and Diana Mondino put the matter aside, but Miley once again endorsed dollarization. “What it shows is that there are no very unified teams.” ““We do not see who will be the Minister of Economy.” “Economic matters are very important in this community, which is why we are talking about Miley becoming president,” Liliana Franco said.