One of the main axes of 2023 presidential campaign It is the Argentine economy and how to resolve the crisis after the elections, which is the point it relates to One of the biggest debates was about dollarization Proposed by the PASO winner, Javier Miley.
With regard to this initiative, Esteban Domec, The economist and director of the consulting company Invecq analyzed the proposal of the La Libertad Avanza candidate and Criticism of consequences What could it bring to Argentina to take this action in monetary matters?
“When you implement dollarization, you do that Advantages like stability in speed and increased bankroll, but you wear a corset and lose all the tools“, detailed Domecq in an interview with Radio RivadaviaHe analyzed both the future and the current economic situation.
The debate over dollarization increased with Miley’s victory in the primary elections, due to the increased possibility of its implementation. However, both by Together for Change with Patricia Bullrich and Carlos Melkonyan as well as in the Union for the Fatherland with Sergio Massa, they criticized Implement this system.
How can dollarization end?
“It’s a system Convertibility is like that of the 90s but extreme. So, when you have a drought, you have a problem, when Brazil devalues its currency another problem, when the dollar rises in the world, you have problems. And This will likely end in a crisis deeper than the convertibility crisis and the patacons crisisDomek said.
Concluding the topic, the economist, one of the most consulted experts today, said: “I find this discussion fascinating, because Although I can agree that dollarization is the kryptonite of populism, we have to talk about Ecuador, which has a fiscal deficit.They’ve put the IMF inside twice in the last 20 years, “The problem is a financial problem.”
Can the Argentine economy be dollarized? A wise man from Javier’s team explained the following
Domec also expressed his opinion on the measures taken by the government in recent weeks after the decision of the Public Security Organization, through which it tried to improve income. In this regard, I consider that “It is more than a flood, it is a global flood of burdens“And warn of the consequences.
“The government is taking risks here out of survival instinct, let’s say politics I tried to try to get more votes at the time, but that is very irresponsible With regard to macroeconomic policy.