Federico Pinedo and Raúl Prebisch were Argentine economists who held positions as public officials in a turbulent and negative global context for the economy. This was in the 1930s, at the height of the war in Europe.
Pinedo served as Minister of Economy from 1933-1935. Also in 1940-1941. PrebischFor his part, he was undersecretary of the Treasury and manager of the Central Bank between 1930 and 1943.
They’re both kids, you might say.
Pinedo, 35 years old. Prebisch, 29.
Perhaps innovation in the art of economic policy and assumption of responsibilities was the order of the day in those days. Joseph Schumpeteran economist of international renown on a theoretical level, recently became Austria’s Minister of Economy at the age of only 36, Thomas McCraw narrated in the biography prophet of change. AT John Maynard Keynesanother economist who will leave an indelible mark on economic theory, was the same age when he was sent to the Versailles Conference to represent the British Treasury.
“This is a time where there is no script to make economic policy, the response of all these economists This is largely based on his intuition.”account to Clarion the economist, author and professor at the University of San Andrés, Juan Carlos De Pablo, who published Pinedo and Prebisch, life, work and management of two Argentine economists (South American).
Raúl Prebisch landed at Mexico City airport on January 11, 1944. A decade later, he would write a report criticizing the distortions that Argentina’s economy had accumulated during the interwar in Europe.
For De Pablo, the context and circumstances marked the fire of the experiences of these two Argentine economists. On the other hand, they have nothing to envy Keynes or Schumpeter, let’s say, in the world of ideas. Not in the world of ideas or in economic policy.
Capitalism has entered a period of depression that never happened after decades of expansion, development and modernization. Argentina’s economy, for its part, began to suffer from the stress of expanding its agricultural, railroad frontier, which added to these recessions of the British Empire and a global economy more closed down by the Great War.
Theoretical manuals in their chapters still explain the fiscal and monetary stimuli for recessive cycles and closed economies.
Of the most relevant decisions of Pinedo and Prebisch, De Pablo highlights three in his book:
– Regulation of export markets. “How can someone who ignores the circumstances of a minister qualify to create regulatory boards, especially for meat and grain? Like an intervention maniac or a regulation maniac … In economic policy, assuming measures are adopted by autonomy is the best way to misunderstand … Since the end of the First World War, the consequences of price fluctuations began to include the list of things that should be part of government action ”.
– During Pinedo’s administration, in December 1934, the sales tax was established and internal taxes were consolidated.. The income tax was extended until 1944 (it was created in 1932 and in theory it would end in 1934) and a collection distribution system between the Nation, Federal Capital and the provinces. “So we owe to Pinedo the beginning of the co-participation system for the collection of some taxes.”
– In 1935, three laws and an ordinance were enacted that laid down central bank operations. Pinedo wanted Prebisch to lead the BCRA, but he turned down the offer and chose to become general manager. “I named 1,200 people through a careful background check. General Agustín Pedro Justo sent me candidates and asked me to take the exam. The Central Bank had a first-rate staff that eventually destroyed itself, ”Prebisch recounted a few years later.
“Since 1931 I have thought that the automatic Money Board system does not work in Argentina. One afternoon Pinedo spoke to me on the phone and told me: ‘Prebisch, prepare me a Central Bank project. I pondered and I believe there is no going back. I wrote the bill, Pinedo corrected it, but I did the basics. ”Prebisch recounted a few years later.
Federico Pinedo, at the center of the image, as Minister of the Economy in 1940 in a work by the British Chamber of Commerce.
Taxes, Central Bank and foreign trade regulation. The main keyboard of any modern economy in a volatile global context and war.
“Both educated, traveled and warriors”refers to De Pablo.
Prebisch would recommend, a few years later, in a report he had already prepared as ECLAC secretary, that Argentina join the IMF and the World Bank. Juan Domingo Perón had already tried to take that step in 1948. But he did not succeed. “The country should not deprive itself of international credit resources to promote development.”
In the same document is recommended by the economist “The device of interventionist measures could begin to dismantle, remove price controls, provide technical autonomy to the BCRA, return deposits transferred to the BCRA to banks and review the lease law.”
2022? No, 1955.
Source: Clarin