The second phase of the government’s economic plan has finally begun, and it aims to completely halt monetary emissions. This urgency comes as the Central Bank faces a significant lack of reserves. In relation to this, we reached out to economist Leonardo Anzalone for his insights.
Anzalone noted, “The government has a clear objective, which is to reduce inflation. This led to the initiation of phase two, involving the tightening of monetary emissions.” He added that this new phase demands a different approach compared to the first six months, during which the government achieved some positive economic results.
Anzalone explained that the inability of the Central Bank to accumulate reserves accelerated the transition to this new program feature, which is linked to the well-known “LEFI.” He pointed out that a key issue has been the disconnect within the government itself, as there were signs of divergence between the statements of the Minister of Economy and the President.
He emphasized, “Campaign promises and actual management are different. When economic variables slip away, decisions must be made based on the current realities.” He elaborated that Minister Caputo continuously monitors price lists and reserve movements to inform his decisions, while the rest often revolves around political considerations.
Additionally, Anzalone highlighted that the government has been taking actions that differ from its campaign promises. He cautioned that failing to make necessary decisions could lead to market dominance. He suggested that the government seems to be trying to bridge the gap to February or March of next year, likely in anticipation of the upcoming U.S. elections.
Anzalone recalled, “We all heard the President refer to the peso disparagingly. Yet, Minister Caputo contradicts this by asserting that the peso will become a strong currency.” He concluded by saying that these inconsistencies have contributed to considerable nervousness in the market over the past few weeks.
Source: https://www.perfil.com/noticias/canal-e/segunda-fase-del-plan-economico-requiere-una-pericia-distinta-a-lo-que-hizo-el-gobierno-los-primeros-6-meses.phtml
