The economist and former head of Banco Nación remarked that it is a “dirty job” on the part of officials. He also made it clear that “There is no risk of spiralization, thanks to inflation doing its job of erosion”.
Thus, for Melconian, the growth in revenue related to spending that is liquefied “makes financing not explode through the air.” That is why “if inflation goes down, the government is in trouble,” he said.
The specialist emphasized that inflation thus gives the Casa Rosada the opportunity to liquefy public spending because the Government “does not want to pay the cost of adjusting it.” Along these lines, Carlos Melconian added: “As much as it says otherwise, and presents a Budget that is anything, the Government needs inflation to cope with the environment.”
Economic recovery and growth
On the other hand, Carlos Melconian referred to the growth expectations of the economy, projected by the Government, which stated that they will be around 10% by 2021. “The Government makes much more hype than it is,” he said.
For the economist, it is a “Asymmetric recovery”, in which some sectors left the pandemic behind, while “others are still deeply submerged.”
“There are sectors in some production record to reach the stagnation prior to which we came, and others that have not been able to reach it,” concluded Melconian.