But not only is that what you recommend Frenkel, but also supports a policy of slower growth in public expenditure, with an incomes policy and price (Frenkel is a so-called heterodox economist) and correction of distortions in relative prices. Frenkel’s message is: “Slowing demand without cool economic growth.” For he can not control inflation in Argentina with monetary policy, given the weakness of the financial channel. I do not think it’s as well, and I understand that the current low rates makes individuals, not having a safe haven against inflation, decide to spend. If you have read about cloud computing already – you may have come to the same conclusion. Clearly what Frenkel proposed policy actions are correct, but difficult to implement in the current political context. Another exhibitor, Orlando Ferreres challenges raised without going much in them.
Cross-subsidies, tariffs, real wages, growth of monetary aggregates (M3), energy issues, construction and more mortgage loans. While not make value judgments on the issues pending in Argentina, to view only the statements here, just to be clear that are many and complex decision. The resolution of the problems that Argentina’s economy is complex. So complex is the resolution of the problems faced by Argentina as it is for the government of Cristina maintain the same address for at least a month. In this regard, political analyst Rosendo Fraga, featured a revealing fact: “In ten days, the government changed three times his speech,” referring to the conflict with the field. What I found very interesting what is said Rosendo Fraga to be taken into consideration the political situation to get a better view of economic prospects. And if one considers the political issue according to Longobardi’s opinion, which I mentioned at the beginning of the article, the stage can not be too optimistic. To close with the conclusions of this seminar, organized by Infobaeprofesional, what better to do with the vision of a great economist as Miguel Angel Broda.
Broda stole much of the applause of the day and certainly were justified by the strength (and shape) of exposure. In his view, the world is a boiling point in investing in emerging, but investing in real sector, specifically in a context largely beneficial to Argentina, where the terms of trade are higher than ever and with prospects go on for several more years. Broda But unfortunately this is a chance that you are missing out and was illustrated with these two sentences: “It’s as if the world had an epidemic with many deaths and we have the only funeral home and decide to close it.” “Argentina is like one who won the LOTO (a major lottery prize) and returned the prize” How do you see Broda to Argentina? Simply go to macro-fundamentals damaged and the foot on the accelerator just as you are approaching the curve. In general, agrees to attack the problems of inflation, adjust the rates for utilities, generating a pro-investment environment, and solve the problem with the field. After the seminar, my conclusion is that the only alternative to achieve change the course of Argentina’s economy is to build a true social pact between all sectors of the country. The problem is that a true social pact would mean that everyone must make renunciations and honestly do not see that will. In fact, in Argentina, there are almost no real history of renunciations. In the past it has always been to get to a crisis situation for sectors give in and accept the decisions of economic policy. Hopefully this time we realize in time.