2023-08-22 19:23:59
Alejandro Werner, former director of the Western Hemisphere Department of the International Monetary Fund (IMF), assured that “the dollar is not the best currency for Argentina.”
The Mexican, son of Cordoba, remarked that the idea of dollarization is not the best in the current context of the Argentine economy.
“From the point of view of traditional economic theory, at the end of the day a monetary union should be made between countries that have similar economic cycles because in this way the monetary policy decisions that are good for country A are good for country A. B. In this sense, Argentina does not share an economic cycle with the United States as it does with Mexico, for example, or with other countries in the region,” he said in Infobae.
Regarding this (a proposal by the libertarian Javier Milei), the economist assured that “there might be other currencies” or that “a combination of countries might be found, exporters of primary products similar to those of Argentina” and thus the country might “stick to that basket of currencies, with much better results.”
stabilization plan
According to Werner, what Argentina needs is a stabilization plan that requires a series of reforms. Some immediate, others structural. For example, the liberalization of the exchange market, going through a reduction of the fiscal deficit and the elimination of obstacles to production, work and foreign trade.
According to the economist, these measures are the same ones that are needed to be able to dollarize. “With which, some may think that dollarizing is the best and others may think the opposite, but for both positions there is a previous path that is equivalent,” he said.
“The work you need to be able to dollarize is the same as what you would need to do if you aspire to stabilize the peso. The first stages of the two stabilization processes are similar. Whether dollarization is the last step or the last is another discussion. Between the baby starting to walk, then running, then building muscles, and then deciding whether to go to tennis or soccer lessons, there is a lot of work to be done. It is still too early to decide if she is going to play tennis or soccer, even if you can raise it as a north, ”she commented.
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