Matías Kulfas, strongly against the proposal to turn the economy into dollars: “They are colored mirrors”

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The Minister of Productive Development, Matías Kulfas, acknowledged this Saturday morning that inflation will be high in March. At the same time, he criticized a possible dollarization of the economy and featured: “We are not saying that inflation is resolved using price controls”.

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Kulfas admitted that In March, inflation was even higher than in February. when an increase of 4.7 per cent was recorded. Although he argues that the third month of the year is becoming “atypical” due to international inflation caused by the war in Ukraine, and they point out that it starts to slow down in April.

“The final number is not closed, we are forecasting it to be higher than February. Germany and Spain had three percent in one month, which is what they have in a year. There is a situation of international inflation, which increases in Argentina. We were able to drop to 36%, and the return to international inflation has brought us back to 50%, ”the minister said in a note given to radio Miter.

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Kulfas also acknowledged that price controls “are not the solution”, but only a tool, to fight inflation. “We’re not saying it’s resolved through controls. It’s a tool that serves to anchor expectations. In a pandemic, for example, with controls, we’re able to keep gondola inflation low on average. It itself isn’t solving problems, we have a macroeconomic scenario to solve, ”he said.

Kulfas, of the Ministry of Productive Development.  Photo: Juan Manuel Foglia.

Kulfas, of the Ministry of Productive Development. Photo: Juan Manuel Foglia.

Asked about President Alberto Fernández’s phrase about “demons” raising prices, he shared that there are “speculators”although he avoided esoteric references.

With speculators and living there is no doubt. In situations of strong instability, such as rising international prices due to the war in Ukraine, speculators appear at this time. That’s why it’s important to draw a line of work. They need to roll back the increases unreasonably, ”the official explained.

“The big issue here is that inflation is not a simple phenomenon to solve. We have 15 years of double-digit inflation, who hastened to the last government. Mauricio Macri said it was resolved within five minutes. As a result of that ease, he was able to deliver twice as much, “Kulfas said.

The Wheat Trust

About him trust in wheat, announced that it will work in the coming days. “This is a fund that will guarantee flour mills the same price of wheat as in February. Wheat went from less than 400 dollars per tonne to 450 a month,” he explained.

When asked about the instability caused by internal politics between Vice President Cristina Kirchner and Alberto Fernández, Kulfas declined to comment, and argued that the approval in Congress “dispels doubts”, “he said. eliminating the scenario of default“at allow “normalize macro”. “We’re going to bet on the unity of the political force, there are differences, but our tone is set on reactivating the economy and creating jobs,” Kulfas told Miter radio.

The field request for biofuel

Kulfas also responded to concerns about the larger shortage of diesel at service stations, a situation that escalated last week, considering the proximity to the farm’s harvest.

“Maybe a lot of people don’t understand this, but it’s not a normal situation, within a few days the price of energy rose. In the case of gas, for example, we made an agreement with the Gas Plan where we bought it at 3.5 dollars in 2020. Now what we pay for 3 is worth 48 dollars, ”he explains.

Kulfas also confirmed that the Ministry is reviewing the cereal companies ’proposal to increase biodiesel reductions in fuel shipments to compensate for difficulties in obtaining oil and gas.

“Colored Mirrors”

The minister also took off the glove of deputy Javier Milei’s proposal to turn dollars into economy and adopted that the proposal is none other than “colorful glass“where” not explained “the damage its implementation will cause.

“In Argentina, it’s common when there are problems, people appear with a magical solution. Experiences have not been good in the countries where it has been implemented [la dolarización]. It is not said what equality will be done, for example. There are so many questions that go unanswered by those who issue these issues. These are colored mirrors for people to cling to hope, but don’t explain how to do it, ”he said.

Here if they explain the implications of dollarizing, “people are flying” He added.

Price and salary agreement

The minister agreed that the loss of money “is a loss of sovereignty.” “Our bet is to regenerate the money. Hard, several years of trouble, my mother told me the Rodrigazo of 1975 and what he had lost. Our challenge is to normalize the macroeconomy, “he explained.

In this sense, he responded to criticisms emanating from the former Minister of Economy of the Menem party and the Alliance, Domingo Cavallo. “(Long) he said he predicted a rodrigazo and it didn’t come true. Everything was exacerbated by the international crisis, but poverty is falling, industry is growing, jobs are being created. There are many real elements of the economy that are stronger, ”he said.

Asked about a possible agreement on prices and wages within 180 days to lower inflation, the minister confirmed that there would be a meeting on Tuesday with the productive sectors but preferred not to promote anything.

“The goal is not to go in two steps, a title and take a picture, we talking to the production sectors and unionism to find measures that we can all get. Here it is not a government initiative, but all sectors of society support this measure and allow prices to be stable, controllable and wages to beat inflation ”


Source: Clarin

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