Luis Caputo, an economist who joined Macri’s government in 2015, has come to characterize him as the “Messi of finance”.
Argentina’s Minister of Economy, Luis CaputoA number of activities are reported to achieve the target Financial balance. An immediate cut in spending in various sectors that receive subsidies from the public administration and the national treasury will be part of the path chosen to reduce inflation in Argentina.
“The commitment to a fixed exchange rate is clearly a technical error, the Argentine economy is institutionally too weak and the elasticity of non-tradable prices too low, therefore, Action is closed, ill-advised and unlikely to succeed. My impression is that the Peronists are using Millay as someone who is going to clean up the terrible economic policy mistakes left by Peronism and Argentina in the last 10 years.“The Dean of the UBC University of Economics explained, Carlos Adrianson.
In that order, the Economist Criticized the announced measures Luis Caputo He thinks that the problem of inflation cannot be solved especially in the South American country.
“If they can make a difference in the short and long term, I see an incomplete, Paulista-grade set of measures that will reduce inflation, much less create sustainable growth, especially if it doesn’t involve significant changes in institutional structure,” he added.
On the other hand, the letter sent by the President of Argentina states, Javier Miele, He has asked his Chinese counterpart, Xi Jinping, to renew the transfer and the Foreign Ministry is preparing a direct link between the two.
“Millay’s letter to the Chinese represented a public humiliation after Millay’s earlier statements about China and the disparaging response of Chinese diplomats throughout Latin America, particularly Argentina.“, he pointed out.
“Argentina is going through a period of great decline, its relative size within the world economy has been reduced by almost half, and it has reduced the level of production per person by 5 points compared to North American production. Significantly developed and the increase of these products can be called a progressive recipe,” he concluded in the interview. Republic.
Carlos Adriansen, Dean of the Peruvian University of Applied Sciences. Photo: Rahul Dineo
What were the 10 actions that Luis Caputo announced?
- Do not renew state employment contracts of less than 1 year.
- Suspend corporate advertisements by national government for 1 year.
- Reduce ministries from 18 to 9, secretariats from 106 to 54, reduce hierarchical political posts to more than 50% and 34% of total political posts in the national government.
- Minimize discretionary transfers from the nation state to the provinces.
- Do not tender for new public works and do not cancel approved tenders for which development has not yet commenced.
- Reducing energy and transportation subsidies, especially transportation in the Buenos Aires Metropolitan Area (AMBA).
- Maintain social assistance programs and develop work in line with those established in the 2023 budget.
- Establish the official exchange rate of the dollar at 800 pesos (representing a devaluation of the Argentine currency of more than 50%).
- Replace the import permit system with a statistical and information system that does not require approval of licenses.
- Double the support given to families through the Universal Child Benefit and increase food stamps by 50%.
