In the midst of the economic crisis which is shaking the Government and which has been strengthened by the recent inflation of 7.7% noted in the last few hours, the former Economy Minister Domingo Cavallo argued that a “full dollarization” of the economy Argentina could work to achieve stability and praised Javier Milei and Juntos por el Cambio.
Cavallo, who led the convertibility plan during his tenure as head of the economic portfolio, was highly critical of the policies enforced by the national government and warned that it “can only aspire to avoid an inflationary explosion“.
“This government cannot implement a stabilization plan. Only when the government changes, with more advanced ideas of creating an economy free for all that is private business and well planned and controlled for public business, and that there are no state interference in the markets, only then will it be able to stabilize,” said the ever-controversial economist in an interview with submachine gun.
And he added emphatically: “The only thing this government can aspire to is to avoid an inflationary explosion”.
Providing details of what he believes the government can do, Cavallo stressed that it could.”simplify the functioning of the trading system“.
“There should be only one commercial exchange rate, and of the non-commercial ones, those that apply to transfers, financial matters, tourism, there are different types, even with great intervention, and this makes it unpredictable. There I would have to let a free market work and there we would know the reality of what people think about the market,” she said.
Cavallo said he did not propose a return to convertibility, but stressed that “there are several ways to achieve the same stability effect“.
“Full dollarization could work, but I think you can’t say a priori “we are going to full dollarisation”, which really depends on the circumstances after the new government announces the general rules of the game for the economy and will inspire confidence. I think there are chances he can stabilize well,” she insisted.
The former official has clarified on more than one occasion that Javier Milei is the one who best represents the ideas of economic freedom he defends and affirmed that the candidacy of the leader of La Libertad Avanza is very good for Together for Change.
“The value of Milei’s presence is because it revalues economic freedom and that has led to Together for Change must incorporate liberals like López Murphy either wants to join Espert, or there are also radicals who were normally quite interventionist but who also preach economic freedom, like Martin Tetaz,” he said.
And he continued: “Milei’s presence helped Together for Change does not veer too much towards economic interventionism“.
Source: Clarin
