Mentioning Vice President Cristina Kirchner’s statement, the government comes up with a plan for check prices. Economy Minister Sergio Massa also tries to give citizens that firepower through the Mi Argentina app. However, the Deputy Minister of Economy Gabriel Rubinstein explained a year ago because price control doesn’t work in a country with the reality that Argentina has been living for years.
At the end of October 2021, the number two of Economy tweeted: “The
fiscal irresponsibility is not a new problem in Argentina. I share the video explaining in @ C5N because price control won’t work, with an increasingly disordered macroeconomy and without a clear economic plan on the horizon.
“Trying to control relative prices in the midst of a high inflation macroeconomic pattern is complicated.”Rubinstein then assured him. The economist once said that “in a context in which one day a price rises and then another” to take a similar path “is to go into confusion”.
“It’s not the way to attack inflation in the world, it’s not the way”, he explained when he was not part of the government. In October last year, the Minister of Economy was still Martín Guzmán, and Roberto Feletti was in charge of the Secretary of Commerce, a position now occupied by Sergio Massa and Matías Tombolini respectively.
In a scenario not far from the current one, the specialist said that a price check made no sense. “That is, now you want to attack something that you are not giving a macroeconomic order to”, indicated.
For Rubinstein, the absurdity was based on the fact that “if you stop at a certain date, during those 90 days, for example, the dollar will keep going up, even wages and other things. And besides, you will have trouble getting then what will you do later? You will need to flash to whiten this. it does not make sense”.
“Why are you going that way?”, then asked the current Deputy Minister of Economy. And in this sense he underlined: «Wanting to manage the economy by seeing who behaves well and who behaves badly, is a bit childish “.
At that time, Rubinstein invited them to do the exercise of looking out. “Everywhere in the world, entrepreneurs try to sell as much as possible and also earn as much as possible.. And you’re not a bad person for wanting to win more. “
For the economist, high inflation focuses on another serious problem, in which companies are relatively responsible, and that’s all. “none of us can withhold prices”, and this produces effects “as if there was a general monopoly attitude”.
“On the other hand, when inflation is very low, all companies are careful to increase because people have the price in mind and does not validate anything. When inflation is high, it is validated, “she explained.
YN
Source: Clarin
