Monday, January 17

Domingo Cavallo predicted what inflation will be in 2022 and proposed an exchange rate split

There should be an exchange liberalization, so that the gap is not so high the monetary policy must be reasonable “, he affirmed forcefully. The economist considered that the Casa Rosada has to “at least” bring the exchange rate “at the rate of inflation, between 3% and 4%.”

In any case, he expressed his rejection of a devaluation. He said that would “add points” to inflation and impact wages and rates as well. “As costs are tied to the dollar, you would have to pay more subsidies or hit a higher rate,” he said.

The government must stop intervening in the markets “, added. “You have to open up to the world, not close and negotiate with your friends, you have to change foreign trade policy. This can be done by a government with clear ideas and a team that has the capabilities to carry out reforms. This government must stop doing it. damage “and pointed out that the current minister of economy Martín Guzmán does not have political support: “He doesn’t have a team, nobody listens to him.”

“It is a dysfunctional government that is not in a position to solve problems such as inflation and must stop controlling prices” and proposed a doubling of the exchange rate: “Argentina has a solution, an effect like the one we achieved in 1991 can be achieved. Today they could be implemented. the measures and better than in the 90 ‘”.

Finally, he warned: “I recommend that they adjust the rates before the exchange rate correction, otherwise they will end up in a kind of Rodrigazo. ”