Domingo Cavallo spoke of three options that would stabilize the dollar

The national representative of Avanza Libertad and an economist, Javier Mieli, organized the event “The End of Inflation” at the Broadway theater, in which the former Minister of Economy Domingo Cavallo participated through a video. The father of convertibilityd said there are three ways to stabilize the dollar and inflation.

But first he ensured that “there cannot be a good monetary system in a totally disorganized economy “.

For everything to flow, Cavallo spoke of the need for “define the rules of the economic game very well “ before implementing any kind of reform plan.

And in that sense, he said that before “we need to define from the outset how the economy will be organized in the future. You have to communicate it clearly to people and that people understand it. “

Thus, once the rules of the economic game have been defined, they are the basis – according to Cavallo – of progress. “If you continue to hold the local currency, the first thing you need to look for is to stabilize the dollar price permanent ”, he indicated as one of the priorities of a good monetary system.

In this sense, the former Minister of Economy stressed that there are several alternatives, one of them “it was the convertible from 1991”. The other could be “a complete dollarization of the economy, that is, practically eliminating the local currency and turning to the dollar”.

And the third – the one he would prefer if he were the decision maker – would be “look for the local currency to coexist with the dollar, being able the two currencies perform the same functions and make them compete with each other “.

“Of course, for the local currency to have some demand, progress will be essential the elimination of the fiscal deficit and the adjustment of the relative price system “, He said at the same time that he stressed that this system has worked very well in Peru and that he does not rule out that it may be adopted soon in Argentina.

According to his diagnosis, in Argentina “the public sector is unbalanced, as it seeks to intervene in all sectors “ which makes the feasibility of a plan difficult.

The meeting, entitled “The End of Inflation”, was also attended by former president of the Central Bank Federico Sturzenegger, as well as analysts and consultants.

“Politicians are not God”Milei assured by explaining the inflation and referring to the plans presented by some leaders.

YN