Thursday, September 28, 2023

For Melconian’s right-hand man, dollarization is “impossible, unfeasible and inconvenient” | The response of the Mediterranean Foundation

The director of IERAL (Institute of Economic Studies on the Argentine and Latin American Reality) of the Mediterranean Foundation, Facundo Martínez Maino, rejected Javier Milei’s proposal to dollarize the Argentine economy by assuring that it is “impossible.”

In the dialogue this Monday with AM750, Martínez Maino pointed out that “a year ago we listened to those who implemented this dollarization plan for Javier Milei – Emilio Ocampo and company – and we saw the proposal as impossible because there was no ‘y reserves, it is not possible. because it cannot be done without the support of a bank like the United States Federal Reserve, which is inconvenient because we have lost an instrument that we want to recover, which is the policy of currency, and quasi-currencies can be automatically detected.

In this sense, the person close to Carlos Melconian stressed that the dollarization is a “disorderly process” that will lead the country to “hyperinflation.”

Carlos Melconian’s economic proposal

For his part, when asked about the plan prepared by the Minister of Economy chosen by Patricia Bullrich in case of winning the general election, Martínez Maino listed the proposals of the team he joined, aimed “to get out of the crisis. .” This, he explained, is a “macroeconomic stabilization” with many aspects: fiscal policy, public debt, Central Bank, monetary policy and exchange rate regime.

“The big umbrella of that is what we call bimonetary, which combines the peso and the dollar, something that people have already decided,” he argued.

And he concluded: “The peso has lost taxes – the most obvious savings – but it continues to maintain others. It is a transactional currency. We believe that little by little you can rebuild also in the values ​​of the peso. They are determined by what you do in the plane of macroeconomic stabilization”.

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