Job destruction can be avoided

One of the most worrying consequences of the crisis is the loss of jobs. There are ways to avoid it. A tool that proved to be highly effective is the one that Germany applied in the 2008 crisis, enabling smaller companies to deviate from the sectorial collective agreements and negotiate with their workers at company level. (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…)

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.

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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…)