If economists will, something strange must be happening Arriazu and De Pablowith a difference of hours and for different reasons, manifest themselves Critics of Dollar Bands Inflation Update This was announced by the central bank this week. Decision which, together with the announced reserve purchase program, represented a significant shift in the exchange rate policy of the government of Javier Milei.
On Wednesday, Ricardo Arriazu, one of the economists who has most defended the president’s economic policies, said at a business breakfast at the Duhau Palace that indexing the exchange rate bands meant “a moderate nonsense” and while he expected economic activity to increase over the next two years, he warned of the risk that this will happen The economic team “Coque la Calesita”. “The stars are on our side, let’s not be idiotsArriazu remarked eloquently.
Juan Carlos De Pablo, who advocated abolishing the bands and leaving the price of the dollar free, questioned with instructive clarity that same evening that the central bank had linked the updating of the dollar to the behavior of the price index. “For a year now, the monthly inflation rate has started at twoDe Pablo said in an interview with Joaquín Morales Soláand questioned that the government had allowed other variables of the economy to fall below this index during the same period.
Authoritarians don’t like that
The practice of professional and critical journalism is a mainstay of democracy. That is why it bothers those who believe that they are the owners of the truth.
Caputo, Bausili and the importance of “good calibration”
“It buys you a problem. Economic policy is used against you,” De Pablo continued. “They changed the band’s criteria: That’s until you buy it. Which I don’t do.”Or I like the precision they gave it. A price index can depend on circumstances. Say the March index is 4. Does that mean you will increase (the band) by 4 in March? I don’t like that.” As is well known, Pablo is a frequent guest on opera Sundays in Olivos (Incidentally, he criticized Arriazu for defending a fixed price for the dollar).
It would be interesting to know Which of the two will the President and the Economy Minister listen to more?
Luis Caputo didn’t have a good day yesterday. They chose him as the target of the shipwreck on the coast of the ruling party in the early hours of Thursday morning in deputies. According to the chronicles, in government offices They accused him of the controversial decision to include in the budget project the repeal of emergency laws on disabilities and the funding of national universities.an initiative that, along with other articles, was rejected with 123 votes against. PERFIL received the same version in a high-ceilinged office in Casa Rosada. But Martín Menem, President of the Chamber, also has his share.
The obsession
With 132 yes votes, the government had achieved general semi-passage of the law before midnight. He allowed himself to be caught up in a frenzy. He also managed to ensure that voting should take place by chapter and not by article at the time of each vote. The opposition legislators (and several northern governors’ representatives who were allied with the ruling party and generally voted in favor) made the decision therefore reject Chapter XI completely. The chapter covered the two bills that had been approved by Congress and which both chambers confirmed by more than two-thirds after the President’s veto less than three months ago. The exemptions were recently incorporated into the project and were not negotiated with the Allies. With Chapter XI The return of funds for co-participation to the city also decreased alienated from the government of Alberto Fernández and a group of 21 billion pesos are earmarked for the judiciaryInitiatives with which the ruling party tried in vain to shield the section.
Six MPs who defended disability and universities laws last October This time they accompanied the ruling party (the missionaries Alberto Arrúa, Daniel Vancsik and Yamila Ruiz, and the Salteños Pablo Outes and Yolanda Vega, all from the Federal Innovation Bloc; plus Nancy Picón Martínez from San Juan, from the Production and Work Bloc, according to the Parliament’s website). The touching demonstration of loyalty it wasn’t enough.
The Congressional Budget Office, a highly qualified technical agency, had estimated the financial impact of the university funding law and the teaching salary recomposition in 2016 0.23% of GDP by 2025. In the case of the National Disability Emergency Law in a series of 0.28 to 0.51% of GDP for the same exercise. According to data released this week by the Ministry of Economy, the public sector achieved a primary surplus of around 1.7% and a financial surplus of 0.6% of GDP in the first 11 months of the year. There is silver.
Javier Milei said that “inflation will start at zero in August” and counted how many YPF rompers he has
The government hasn’t properly explained where it is Persistence in repealing two laws that had strong support in Congress. In an interview with Jorge Fontevecchia, Miguel Pichetto said that it would be included in the budget project It was a “provocation”and it doesn’t seem wrong. But it was also a clumsiness. Yesterday there were strong reports of the President’s deep discomfort with Peronist governors and others who are not, to whom he has allocated billions of pesos in funds to ensure the approval of the project sent by the executive branch to Congress. Angry presidents are a whole genre.
The setback among MPs affected the Senate’s treatment of labor reform. The ruling party sought an opinion in a commission, but given the loss of harmony with the dialogue sectors, postponed the on-site debate until the end of Februarywhen the President convenes a second round of extraordinary meetings. There will be no half-sanction for labor reform this year, a modest triumph of the unions who marched very professionally to the Plaza yesterday in their rejection.
What was the mobilization in the Plaza de Mayo against labor reform: the songs for a general strike and the search for strength
The House of Lords will debate the bill next Friday 26th. budget with half a sanction in MPs. The ruling party expects to push for the changes. I missed that Milei would veto the bill if the Senate does not agree to the original version.
Apart from a certain daze that he displayed at dawn in “Deputies” and the wails that arose throughout the day in the Casa Rosada, this is revealed at first glance The government overestimated the results of the October parliamentary elections. It was a vote of confidence and not a “runoff election result,” as the president assumed. It is not easy to establish hegemony in Argentinano matter what time of year. Some never reached it, although they seemed to be able to reach it on foot. Milei could ask Macri.
Strange in the midst of all this is the outrage of the PRO’s purple MPs about the Early morning negotiations and agreement between La Libertad Avanza and Kirchnerism for the distribution of positions in the General Auditor’s Office of the Nation. A case of wounded narcissism.
ML
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