Quality of institutions and business ethics at african level

The “Diary” of the Kirchneristas’ driver and the repentant businessmen who collaborate with Justice to uncover corruption cases should not surprise. For years, international competitiveness indexes come warning that the country suffers an ethical and institutional degradation similar to that of the most backward countries. (more…)

It is possible to duplicate the taxes on wealth

In Argentine society, the aspiration to promote social justice is adamant among the majority of the population. But for this to happen, a less regressive tax structure is essential. The fiscal crisis is the opportunity to go ahead in decreasing distortionary taxes on production and strengthening the taxes on wealth. (more…)

DOLLAR RISES BECAUSE LOW PRODUCTIVITY NOT DUE TO THE CENTRAL BANK

The devaluation put an end to the artificial increase in the purchasing power in terms of dollars caused by the financing of the fiscal deficit with external debt. To generate sustainable improvements of income in term of dollars, there is no need of better Central Bank presidents but genuine increases in productivity. (more…)

Subsidies are the only public expenditure that have dropped

The presidential veto to an opposition initiative ordering the comeback of the utility subsidies laid bare the mediocrity of politics. The fiscal situation is critical and the reduction of subsidies is the only advance. Ordering the public finances demands a more integral approach that includes a pension system reform and the reconstruction of federalism. (more…)

1 out of 5 retirees receives double benefit

One of the most irresponsible decisions made since the return of democracy was the free granting of 3.5 million retirements to people who had no contributions to the pension system and without any socioeconomic assessment. The challenge now is to correct the inequities and unsustainability caused by this decision. (more…)

FISCAL DEFICIT PRODUCES EXTERNAL DEFICIT

By taking external debt to finance the fiscal deficit, the incoming dollars appreciates the peso, discouraging exports and promoting imports. Therefore, to correct the big Argentinean external imbalance it is fundamental to accelerate the gradualism and balance the public finances. (more…)

REDUCTION OF PUBLIC EXPENDING BARELY COMPENSATES RISE OF INTERESTS

The economic authorities assess that the run against the dollar is unjustified since
the primary deficit is falling. However, the savings obtained just equals the increase
in interest generated by a growing public debt. This shows that gradualism adopted
is inconsistent.

(more…)

El problema no es el dólar sino la inflación

La suba del dólar genera preocupación. Sin embargo, como lo demuestra la experiencia de los países vecinos es natural y necesario que el dólar suba cuando hay alta inflación. El Banco Central no va poder tranquilizarlo, si el resto del sector público no baja más rápido el gasto público.   (more…)