For the former representative of Argentina to the International Monetary Fund (IMF), Héctor Torres, “all options (to get out of inflation) are bad”.
Héctor Torres, a lawyer specialized in international economic law, ruled out the possibility of dollarising the economy because “I don’t think we are able” to do it “without applying a confiscation of deposits or a monumental devaluation”.
In this regard he noted: “You can’t dollarize without dollars.”
“There is a lack of competitiveness in the economy, which causes growth to cause current account deficits,” he said. And I add: “The rift leads us to irregular policies that prevent us from getting out of this situation.”
The day after the publication of February CPI data, released by INDEC and marked at 6.6%, more than analysts expected, Torres warned: “All options (to get out of inflation) are bad.”
“In general, it is advisable to raise interest rates so that people save more. This alone does not work in a bi-monetary mental economy like ours, ”she stressed in a dialogue with Continental Radio.
In this regard he concluded: “The international repercussion of more than 100% inflation in Argentina has been very important. The Financial Times has highlighted that in three years the currency in circulation has quadrupled”.
NS
Source: Clarin
