The fight against inflation: an endless choreography

Officials on duty tackle the microphones or cameras firmly and assert “Inflation worries us but above all it worries us”. It is lesson one “instruct” they receive to talk about a question that concerns the population and for which the authorities do not have many effective solutions. In return, the officials offer diversity of initiatives, programs, meetings with entrepreneurs, revisions of agendas, various initiatives, press releases and photos.

There’s a choreography of inflation which is basically based on the fact that officials broadcast feeling of action. She makes them worry, they don’t care, and in the end they end up saying, in a fit of sincerity like that of former Commerce Secretary Roberto Feletti: “I’m not a magician.”

Multi-causal inflation distributes and dilutes blame. In other countries, when there is inflation we speak of Central bank. The head of the central bank Miguel Pesce said, days ago, that the policy of raising interest rates here is not effective because the financial system is very small. of the issue of pesos not much was said about financing the budget deficit. of the low demand for pesos even on the part of society, which is in a hurry to get rid of it. There is no mention of the fiscal deficit either.

As it avoids talking about the fundamental issues behind inflation, what remains of the entire statement is a never-ending choreography:

– Blame it on monopoly powers, who set prices at will and reduce free competition;

– An example of this, cited by President Alberto Fernández, is that the 80% of the dairy bread market is in the hands of a single company;

– Must review production lines detect where there are excessive price increases;

– There are too many intermediaries which end up inflating prices;

– It can’t be that the producer receives three pesos per kilo of pear and in the greengrocers it costs 50 pesos;

– Companies profit the hunger of the people;

– We have to promote popular market economy and family farming;

– We must create state-owned food companies;

– The intendants they have to go out and check prices;

– People have to walk more, if necessary go shopping at the Central Market;

– People have to denounce excesses;

– Must measure the gondolas and reserve space for SMEs and regional products. That is why the law on the gondola was made;

– You have to build a Excel where companies report shares, costs, profit margins;

– Must decouple domestic prices of the exterior, and for this reason nothing better than increase withholding taxes;

– If we produce food for 400 million people how can Argentines lack food;

– We have to put maximum prices;

– need to expand careful prices.

The dossier of the initiatives could date back to the 70s, and would not change much with those that are read every day today.