The Economist Michelangelo Broda He spoke regarding the lack of an economic program promoted by the Government of Alberto Fernández, delved into the acceleration of the crisis in all areas and blamed -in part- the IMF for “being complicit in the extravagant policies” of the Executive Power.
During his time through The cornicewith Luis Majul, Broda affirmed that since Fernández took office “everything got worse”. “There never was an economic program. They always tried to control the symptoms but without ever looking for the real causes that generated them, “he said.
Along these lines, and although he highlighted the help offered by the International Monetary Fund, he denounced that “following the acceleration of the crisis, even the Fund itself decided to throw in the towel with Argentina”. “Today he acts as an accomplice to the extravagant economic policies of this government”complete.
Para Broda, “[el Gobierno] it has a logic inconsistent with economic theory and an enormous capacity not to learn. We did not get to October without an acceleration of the crisis. All this, forced because we have no reservations. We probably have to devalue and without having a program, which is worse”.
focusing on the rise of the blue dollarwas pessimistic and said that the rise in the US currency “has no ceiling” and anticipated: “If the clubs speed up, anything can happen. And we’re not just talking regarding a parallel dollar like the blue. This example can be extrapolated to all types of dollars.”
He also spoke regarding the strategies used by ordinary citizens to avoid losing to inflation and emphasized: “No one burns bills. People buy goods or exchange the peso for a much more profitable currency. And I don’t see this changing anytime soon. There is no possibility to carry out a stabilization”.
Regarding the latter, the economist explained that “it is not possible, not for a purely political issue but because, in order to carry out any program, pre-work to be done such as putting fiscal order, relative prices and encompassing that technical consistency with a good reputation of the Government”.
The economist also harshly criticized Cristina Kirchner. In the talk with Majul, Broda considered that the vice president “it is believed that it knows everything: that it says that the fiscal deficit does not matter; that inflation is multi-causal, and that the markup is much more important than the issue”.
She was later honest by saying that “being advised by Verbitsky and Kicillof is impossible” and continued with reproaches to the former president: “She has an enormous capacity not to learn. They want to intervene every day. Deadlines are getting shorter. The only thing that can happen now is that they hold on. there is no other”.
Even so, he ventured that “the attempt to endure is not sure of success. Those who committed themselves, such as the World Bank and the IDB, no longer want to give us the money. We did not meet the goals of the Fund. In all the items we are aggravating. We must anticipate a crisis worse than the one we are experiencing.”
“We are a country on Saturn. We are excluded from the world. We live our own reality. And it is not like that. What happens in the world does not affect us as much as the Government says. The prices are the same as in the prewar period. The rest of the countries are in a similar situation and do not have this kind of madnessBroda said.
Regarding what should be done to alleviate the existing economic imbalance, the economist first remarked that “You cannot continue to increase public spending as it continues to increase.” “We have to solve the problems at the macroeconomic level. We cannot look the other way, ”she limited.
And he presented “two alternatives” possible to get out of the crisis: “One of those alternatives is that the street imposes it. The other is for the government to do it. The problem is that if the Government decides to face an exit without a comprehensive plan, we are not going to stop one devaluation following another as each month passes.
“They are stuffed. It’s all tied up with pins. If they unleash the exchange rate without a program, they will generate a hyper. It is a very complicated situation. We are running out of fabric. Everything they do today affects their credibility and more so when you see a disconnected President and Vice President, ”he expanded.
Finally, in the last sections of the interview, a forecast of the increase in inflation at the annual level appeared and determined: “This year’s inflation, if all goes well, is going to be 90%. We are entering a new stage of growth in the inflation rate.” “We exceeded all expectations,” he joked to finish.
