Sector Público (ingles) archivos - Page 5 of 13

Sector Público (ingles)

The worst is yet to come in terms of inflation

The inflation rate remains at a very high level with very negative impacts on social costs. Inflation is intrinsic to the government’s economic policy. It will not be reversed without a change in strategy. In particular, public spending must be moderated to avoid massive monetary creation. (more…)

Central banck’s debt “snowball” nears 2018 level

The optimism generated by the success of the “soya dollar” overlooks the growth of Leliq (the central bank’s debt) that it provokes. The experience of the previous government with the Lebac (predecessor of the Leliq) is very instructive. When they grow too much, they impose the need for a big devaluation. (more…)

Budget confirms fiscal inconsistency

The government presented the draft Budget 2023. In addition to a complex and disorderly presentation, the projections have little relevance because they have been elaborated under an unrealistic inflation assumption. In any case, it confirms that the fiscal disaster continues to deepen. (more…)

The soya – dollar increases inflation

The more the soya-dollar increases reserves, the more monetary issuance there will be, consequently, more inflation. There is an underlying obsession with increasing reserves when efforts should be focused on lowering public spending. The problem is not a lack of dollars in the economy, but that there are too many pesos. (more…)

The cost of Leliqs is equivalent to 8 million minimum pensions

The economic crisis ceased to be the center of attention due to the serious incident suffered by the vice-president. But the economic situation goes on worsening. Proof of this is that what the Central Bank spends on Leliqs interest is already equivalent to two-thirds of what the ANSES spends on pensions and retirement benefits. (more…)

IMF fiscal target is met with accounting make – up

The public accounts reported by the government state that the targets agreed with the IMF are met. But this was achieved thanks to an accounting gimmick that allows recording an unusual increase in extraordinary revenues. The maneuver seeks to conceal the explosive dynamics of energy subsidies. (more…)

Inflation is a state policy in Argentina

The acceleration of inflation is of growing concern. Focusing on the current government’s mistakes overlooks that high inflation is a long-standing problem in Argentina, linked to the chronic fiscal deficit. In order to recover stability and growth, a comprehensive reorganization of the State is essential. (more…)

To increase domestic consumption, exports must also be increased

The argument that exports compete with domestic consumption is back. The corollary is the idea that in order to protect consumption, exports must be limited. But the solution is the other way around. Exports must be increased to generate the foreign currency needed to expand production and consumption. (more…)

Argentina could export more fuel than it imports

Fuel shortages add another factor to the deterioration of people’s quality of life and the economy. As with the acceleration of inflation, the war in Ukraine added difficulties, but Argentina’s problems are the result of its irresponsibility in the formulation of public policies. (more…)

The war on inflation means a shooting in its own foot

The government declared war on inflation with the same instruments it has been using so far. It continues to underestimate the impact of excess money printing on prices. Nevertheless, the most contradictory thing is that the government itself needs higher inflation to reduce public spending in real terms. (more…)