martin tetaznational deputy of Together for Change, and fernanda vallejosformer Kirchnerist deputy, crossed paths through social networks and on television around a debate on the economic situation of Argentina and the fear of a devaluation.
Before the television crossover, both had had a crossover via Twitter, where the opposition economist launched: “Let’s say it in Creole, Massa’s measures are due to panic over hyper; they want to give liquidity to the CCL to prevent a run on deposits from exploiting the gap, in the context of a drought that will subtract 20,000 million dollars from the economy.”
“Hyper inflations are not produced by a hyper issuance (although they are preceded by a lot of issuance), but because Demand for money plunges as people panic and run to get out of currency“, explained Text and argued that this happens because of the “expectation of devaluation”, which is now combined with the lack of reserves.
In this sense, he maintained that “such a shortage will inevitably adjust for price (devaluation) or quantity (more stocks)” and concluded: “I say this because the best way to clear the expectation of a devaluation is, paradoxically, by valuingbut politics, in Peronism, does not let you devalue in an election year.”
“It is good that JxC speaks clearly. They want to devalue Just like the IMF. It’s all about that. And finish pulverizing salaries. Implicitly, recognize that the mega-devaluation that they promote leads to a hyper. And, if I understand correctly, the mistake is trying to avoid it, “the former deputy responded to Tetaz, citing her tweet thread.
Reserves: the Central Bank secured almost US$ 3,000 million to avoid an uncontrolled devaluation
“Gentlemen: the best way to clear up the expectation of devaluation is, paradoxically not at all, not subject the country’s external accounts to an unsustainable burden of external debt like the one that the macrismo took and, of course, not to escape the UDS and leave the IMF as a counterpart,” the economist retorted.
In turn, he acknowledged: “Nor do I forgive the bad economic management of the first 2 and 1/2 years of the FdTin relation to the arrangement of the inherited debt, in particular the new EFF with the IMF, and the administration of the external accounts when there were favorable conditions”.
After the controversial exchange in networks, both economists crossed paths in the program The Two Vocalsby All News (TN), in which they resumed the discussion that had confronted them on the little bird platform.
“In the hypothetical case that they win the elections, how much are they going to devalue?“, Vallejos questioned Tetaz, to which he insisted that “a reform must be made that implies cut spending by five points“, and exemplified: “ending with the privileged retirements and ending with the deficit of the companies of the State”.
Likewise, the JxC deputy insisted: “Cristina Kirchner delayed the exchange rate by 53% to create the illusion of high real wages. The consequence is that we lost the external surplus. She is the worst president since the return of democracy.”
Before her proposal, the former legislator emphasized: “Mauricio Macri’s government left an unsustainable debt load as one of the elements that explain the lack of reserves”. “There is a very harsh focus on Cristina’s government, but in the middle Macri”, he insisted.
“You ask for a devaluation and ask as a reverse for a pulverization of wages because they consider them a cost”accused Vallejos and assured that “they will make important efforts to prevent this devaluation from taking place because they represent the interest of the workers and the broad popular majorities of Argentina.”
For his part, Text He assured that “Macri received the country with a deficit and delivered it with stability and record public works”, at which time the economist reminded him: “The Macri government was a record debtmore than US$103 billion fled in his four years in office.”
“During Kirchnerism, US$97,000 million escaped”remarked the legislator at the end of the heated debate.
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