Sector Público (ingles)
The tragedy in Ukraine will have a global economic impact. In principle, Argentina is not so vulnerable because it exports much more cereals and soybeans than it imports gas. But if it keeps utility tariffs frozen, the increase in gas imports will add another destabilizing factor. (more…)
MOREA critical point in the negotiations with the IMF is the reduction of economic subsidies. To this end, it is crucial to update utility rates and eliminate assistance to state-owned companies. In this context, proposing the creation of a state-own food company is extremely contradictory. (more…)
MORETogether with electricity distribution and urban transport, water and sanitation is another public service in AMBA that the federal government should stop administering. The service should be transferred to CABA and Buenos Aires province so that they manage the service as in the rest of the country. (more…)
MOREThe FMI’s evaluation of the loans granted in 2018 motivated a heated exchange of accusations. But the most important conclusion is that the core of the problem is the persistence of unsustainable fiscal deficits. To correct them, the urgency is not to lower public wages spending but economic subsidies. (more…)
MOREThe mechanism by which the Central Bank covers the fiscal deficit and then absorbs the excess of money issuance with Leliqs and repos is running out of steam. Besides being unsustainable, it is a very regressive use of public funds. To eliminate it, the fiscal deficit must be lowered. To this end, reducing utitility subsidies is key. (more…)
MOREIn order to absorb the monetary expansion due to the fiscal deficit, the Central Bank issues Leliqs and repos. The abusive use of these instruments made that most of their growth is explained by the interest they accrue. With no capacity to absorb the excess of money supply, there is no other option but to order the public sector. (more…)
MOREThe riots in Patagonia reveal the disorder under which the public sector operates. The federal government refuses to protect national roads but uses funds to build streets and sidewalks that are municipalities’ responsibility. It also allocates a large part of the security budget to help the metropolitan region (AMBA). (more…)
MOREIn the 2019 election campaign, the current President promised to increase pensions with the interest paid to Central Bank bonds (Leliqs). Two years after that promise, the situation is the opposite. The loss in the real value of pensions is paying part of the interest paid by the Central Bank to the Leliqs’ holders. (more…)
MOREThe Vice-President made public her demand for more public spending. Nominal spending can be increased, but not real spending, because inflation automatically causes it to lose its real value. The Vice-President’s proposal, shared by many Argentines, is at the core of Argentina’s decadence. (more…)
MOREThe growing people’s refusal to accept more money expansion forces to increase the fiscal deficit financing through more public debt. This generates an unsustainable trend that increases the urgency of addressing an integral public sector ordering. However, the issue is not on the political agenda yet. (more…)
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