2023-08-18 01:34:18
The latest inflation data showed a 6.3% increase in prices, however specialists estimate that this will be the last CPI of a single figure, which would give rise to a spiraling of inflation. Thus, Channel E interviewed the economist and CEMA professor, Augustin Monteverde.
Argentine inflation for the coming months
According to the economist: “The only financing that remains for the State is the outright issuance of pesos.” This “is done in different ways, such as transitory advances from the Central Bank, and to hide that issue they do it through the purchase of bonds held by the Central Bank,” explained.
“What is ahead is a true tsunami of pesos, because we are entering the toughest semester of the year in tax matters“, sentenced Moteverde.
Then the interviewee explained the danger of the Levacs that are now Lelics, which generate the economy in general and said that, “Now they are only in the banks, that is, now what is at risk is the banking system.”
For the economist: “The effect of the weights on the streets will be noticeable both over time and immediatelybecause the markets are seeing what is happening and they are going to get ahead of it”.
The Argentine economy on the brink of hyperinflation
Regarding whether the current situation of the Argentine economy can trigger hyperinflation, the interviewee assured that, “the conditions for hyper are given“.
In this sense, Agustín Monteverde listed that the conditions for hyperinflation are: “Indexation of the economyeverything is already indexed, that feeds back the inflation rate.” “Quasi-fiscal debt is monstrousquadruples the currency in the hands of the public and the interests generate an independent endogenous expansion of state spending, which represents some 48 billion dollars.” Finally, “the fall in the demand for money, people give pesos more rotation because they know that they will melt in their pockets,” he concluded.
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