The others 170 experts of macroeconomics and finance released a document in which they openly questioned the dollarization plan of Javier Milei, one of the biggest promises of the libertarian candidate, and warned that. could lead to “hyperinflation and a crash”. Because of this, the journalist Liliana Franco remembers that, “the last time they did something like this was the intervention of INDEC.” “It’s not unusual for economists to come together to question a campaign promise.”
Criticism of dollarization by Javier Milei
“What economists suggest is what dollarizing means and what are the negative consequences of dollarizing., the interviewee explained. The first result is “the loss of freedom of monetary policy“, this means that, “In the face of an external shock, Argentina has no possibility to use this measure to protect itself,” he said.
In this sense, the reporter recalled that, “This happened with the conversion of the external shocks suffered by Argentina in the tequila crisis, the crisis in Asia and Brazil.”
For Liliana Franco: “What Milei does, which is smart, is to establish people to feel the stability of their income.” “Historically, a country like ours has 57 years of fiscal deficit, where inflation has been with us except for conversion.” Right, “People know that the store of value for money for them is the dollar” Milei saw that in order to make dollars she needed dollars,” he explained.
The results of the meeting of investors in the United States
In this context, part of his team traveled to the United States where, “there were meetings with more than 50 investors and “There is no talk of giving funds to Argentina or that the three funds will get the 60 thousand dollars in credits offered by Milei, what they told me is that there is no mention of that.” Franco commented. He then added that the meeting “not very satisfactory for investors” who want more details about the measures that the libertarian candidate wants to implement.
Finally, the reporter mentions that “Darío Epstein, Juan Napoli and Diana Mondino stopped the issue, but Milei once again signed the dollarization. “What it shows is that there are no solid teams.” ““We don’t see who will be the Minister of Economy.” “Economic matters are very important in this society, to the point that that is why we are talking about Milei’s presidency,” said Liliana Franco.