Economists urgently demand a stabilization plan and warn of a devaluation

“It has high inflation, misaligned relative prices, an exchange rate gap above 100% and a central bank balance sheet that is literally bursting, with no dollars and pesos left in the economy. The truth is that a stabilization plan is urgently needed“.

This was underlined by the economist and director of the consulting firm Eco Go, Marina Dal Poggetto, in a meeting organized by the Center for Coordination and Development (CCD) on the subject of inflation.

The economists summoned to this exhibition agreed that it is almost certain that inflation will exceed 70% by the end of the year.

In addition to Dal Poggetto, Agustina Gallardo, Chief Economist of the Bank for Investments and Foreign Trade (BICE), took part; Diego Bossio, economist of Equilibra; Diego Coatz, chief economist of the Argentine Industrial Union (UIA); and Mariano De Miguel, director of the Workers’ Statistics Institute (EIT), Metropolitan University for Education and Work (UMET), discussed in moderation the causes and consequences of inflation and measures to overcome it from Director General of the CCD and the former Minister of Education of the Nation, Nicolás Trotta.

Agustina Gallardo, chief economist of the Bank for Investment and Foreign Trade (BICE), highlighted in her participation that inflation “hinders and distorts” all relative prices of the economy, with an impact on credit, which is a driving force. central to development. investments that stimulate the growth of countries.

“Countries with high inflation deteriorate credit. This is because when prices change, the price of money changes. And then nobody wants to make contracts that are too long because they don’t know what will happen in the future ”, commented Gallardo.

For Bossio “an anti-inflationary plan needs the credibility of the political class and even a little luck”, because a pandemic or a war can appear and everything changes.

And the chief economist of the Argentine Industrial Union (UIA), Diego Coatz, said that “talking about multi-causal inflation does not say much” in relation to the diagnosis that Minister Martín Guzmán usually points out. “We try to avoid devaluation. And if we can’t, let it be orderly and stabilizing.”

Trotta, for his part, said that “it is necessary for the Government to develop a roadmap with concrete measures against inflation that will allow for the generation of confidence in the various sectors”.