Alberto Fernández, Miguel Ángel Pesce and Mercedes Marcó Del Pont presented the new banknote designs at an event at the Bicentennial Museum. Image: TV capture.
This Tuesday, while unveiling his new book “Monetary Policy of the 21st Century”the former head of the United States Federal Reserve, Bernanke, was sentenced: “I think monetary policy is 98% talk and 2% action. Communication is an important part.”
An example that is in the history books, and endorses what Bernanke said, is what happened July 26, 2012when the economic crisis hit the euro zone, particularly Greece, Spain, Italy and Portugal, and the continuation of the Euro was questioned.
The then head of the European Central Bank, the Italian Mario Draghi, He said at a press conference: “I will do everything to save the euro (“No matter what happens”). And I added “Believe me, it’s enough”.
Until the market hears those words, the collapse was widespread in the euro zone stock markets and panic touched the whole world. After “Whatever it takes” the bags literally fly. With those words from Draghi, the departure from the crisis began, at least in that crisis.
Bernanke’s definition and the dedication to Mario Draghi make sense of what is happening at these times in Argentina. In the running of inflation 6% monthly and aims to approach the three digits for the whole of 2022, on Monday they happened two really remarkable episodes.
On the one hand, the resignation of the Secretary of Commerce Robert Feletti, to whom it is given -probably not reasonable-The failure of its policy of price control, of harassment of companies, of harassment of economic-concentrated-price-setting-powers.
The resignation has been the reason for the linear linking of the problem of widespread inflation to the meager result of an official who, because of his radius of action, I have everything to lose if it is assigned to the task of stopping rising prices.
Feletti’s resignation was followed, some time later, by an action in which new old bills. New and old because they bring new drawings but do not change current names. These are fees that when hitting the streets will be 20, 30 or 40% lower than they are today.
But despite the theme of heroes and denominations, something significant happened. At the ceremony was the president of the Central Bank, Miguel Isda, that in the case of banknotes, and above all the economic context in which they appear, not once did he utter the word inflation, or the word price, or the word expectation. In other words, he did not take the opportunity to “speak” in the sense that Bernanke gives the word “speak” when it comes to a Central Bank president.
Yes, a former Central Bank president said, Mercedes Marco del Pont that there is no better idea than to claim, also vigorously, the power of the BCRA already finance the Treasury’s fiscal deficit, is now identified as the main reason behind inflation. Marcó del Pont “spoke”. But it certainly didn’t help.
The Central Bank is taking advantage of the fact that the Ministry of Commerce “drag marks” and the discussion about inflation is taken to that side. There is a lot of talk about prices but little about monetary policy (BCRA) or fiscal deficit. (a place where the responsibility rests with Martín Guzmán) In the country second in the world in terms of inflation, no one speaks about the Central Bank. Nor does the Central Bank speak much.
Contrary to what is happening around the world, that when inflation rises, the only question is what the central banks will do to control it. Every word said by the head of the United States Federal Reserve is examined in detail. The same in Europe or in Brazil.
Here we rejoice kick the fallen, in this case, Roberto Feletti. In part, that happens because Feletti believes he can play a game that isn’t for him.