he Former Minister of Economy, Sunday CavalloToday, Wednesday, he pointed to what he considers to be the most important problems facing the government It must be resolved to achieve exchange stability.
He added: “In my opinion, it is very difficult to achieve the exchange rate stability plan while imposing exchange controls.” He expressed, as a first point. He said this when he was one of the speakers on a panel of “former ministers” at a conference Latin American Economic Research Foundation (sincere).
The two main problems Cavallo pointed out with Miley’s economic policy
The session focused on “How to Reform the Economy” horse It was powerful when analyzing decisions in… The monetary issue of Javier Miley’s management.
“Whoever undertakes the reforms, the first thing he must describe is the type of economic organization he wants to achieve,” he said.
“Anarcho-capitalism is a bad idea. All countries in the world have a government sector that performs a series of functions and must be financed. On the other hand, the private sector should already be Especially and operating under competition in an open economyHe added when placing the economic plan proposed by the President in its context.
In this sense, he referred to the performance of the economy and the continuing fluctuation in the value of the dollar.
He added: “It is very difficult, in my opinion, to achieve the exchange rate stability plan while imposing exchange controls.”“Io”opinion.
“The criticism I have is that I controlled the changes and It has many limitations to Financial transactions in dollarsrestrictions imposed on legal entities, “It is a very limiting factor to ensure the sustainability of the stabilization plan,” the economist noted.
“We are not in a position to think about a completely dollar system; But the dualism of criticism, which operates without restrictions.” He insisted. He stressed: “We must enhance monetary, banking and financial freedom.”
He expanded in this context: “As quickly as possible, convert the peso into a convertible currency, not in the sense of a fixed exchange rate“But without exchange restrictions or controls, so that it is truly convertible, you can go from peso to dollar, from dollar to peso.”
“Impossible without reservations”
“It is impossible to believe that he can act without reservations or with negative reservations. Moreover, how will we ensure that there are no expectations of devaluation if at some point the stocks of legal entities will have to be cancelled,” Cavallo commented when presenting his other strong criticisms of the government.
“In turn, The dollar must be declared legal tender. Something more similar to what is the case in Peru, where the monetary binary system works well. The key is that it has many reserves of its own.”
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