Home » An advisor to Javier Milei admitted that dollarization generates vulnerability

An advisor to Javier Milei admitted that dollarization generates vulnerability

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An advisor to Javier Milei admitted that dollarization generates vulnerability

The Economist Dario Epsteinmember of the Council of Economic Advisors of the presidential candidate of La Libertad Avanza, Javier Mileyadmitted that a hypothetical dollarization to apply in an eventual libertarian government “it has its cons”like a greater vulnerability to external shocks.

“With a dollarization you gain some things, especially by not allowing monetary issuance to politicians shift. But also You have some cons. With an external shock there is more difficulty in answering. It is a ‘trade-off’, a decision. Clearly you cannot go to dollarization without considering the banking system. This has good things and bad things“, said the specialist in a series of teleconferences organized by the investment fund firm MegaQM.

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In that framework, He said he did not know if “we have to wait for the weight that is credible” and recover its value as currency or “go directly to dollarization”escaping from that process, which may lead to a waiting time and measures related to said objective, the agency reported Telam.

On the other hand, he explained that the main aspect of the Milei program focuses on lowering public spending, and rejected the idea of ​​a Bonex Plansomething had been proposed by another of Milei’s advisors, the former Menemista official Carlos Rodriguez.

“Us We don’t want that or hyperinflation. Because with the Bonex we affect the small saver and savings in general, and the hyper It is the most perverse form of adjustment because it affects people with fewer resources,” he said.

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On this last point, and in relation to the inflationary context current, after knowing the record CPI for August, added: “When many say that it is better that the hyper occurs in the current government, I disagree. It’s better that it doesn’t happen to anyone. “You have to think about the country and not selfishly.”

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In line with the proposals to be implemented in the case of a possible government, he revealed that one of the keys in the first days of management It would be working with the Leliq.

“If the Leliq are cleaned It would be much easier to think about organizing, first foreign trade and second the stocks, which are restrictions on activity. To get to that, The country needs order in everything related to the emission uncontrolled and repressed, which is contained in the Leliq,” he said.

Regarding the exchange rate, Epstein did not go into details, but noted that “it has to be logical” and not “be late on purpose” for what the incentive to import or not export disappears”.

Lower spending and “privatize everything”

On the other hand, considered “urgent” to lower spending in general and fiscal spending in particular. “We must bring the deficit to zero and if we can have a surplus better. From the outset, you have to focus with a reform of the State and a reduction in spending why Otherwise the path gets complicated later“, said.

In this sense, he stressed the need to “privatize everything you can” in terms of public companiessuch as Aerolíneas Argentinas and YPF, to carry out these policies.

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He also highlighted that “a large amount of spending is not national but provincial or municipal”and that there “there is no capacity to act”, after which he indicated that, in the hypothetical Milei government, the State “will stop spending on public works going to a public works initiative with a private initiative”.

Lastly, and regarding subsidies, ruled out eliminating them from the first day of government because “people are in bad shape economically”but proposed that the demand be resolved instead of the supply.

RS / LR

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