Javier Miley: “How can there not be a risk of hyperinflation?”
The La Libertad Avanza MP expected that any possible adjustment to the current economic policy could also lead to a “catastrophe”.
La Libertad Avanza MP, Javier MileyIt was noted this week that Argentina is experiencing new hyperinflation in the short term. “How can there be no risk? It is obvious that there is a risk of this.Summed up by Miley in a dialogue with Jose Del Rio, by LN +.
During a visit to the business community, Miley explained: “There is more than one monetary base, there is a future issue, and the amount demanded, under control, is three or four times more than it should be under normal conditions. There is a raging surplus of money“.
Regarding the possible adjustment of this volatile economic course, the Liberal Economist noted that “Now any adjustments can raise prices again.” “It can cause unrest. “Let’s take into account that the suppressed inflation in Argentina is equal to 1000%,” he explained.
He also pointed out that there is a possibility of hyperinflation without emissions: “The key to not achieving hyperinflation is what happens to the demand for money. If any item causes a drop in demand for money, you can have it without the need for a hyper cash issue.
He then limited himself to explaining only the reasons why Argentina is living in a “constant inflation cycle”. “First of all, you have to understand that prices are not rising. What happens is that the peso loses purchasing power. ” Noted the Liberal MP in the first instance.
“The amount of money circulating is increasing sharply to finance the fiscal deficit, while the Argentines are rejecting the peso”He added in a few minutes after the comment: “The public does not want local currency and it seems that politicians are not going to run a small car.”
On that stage, The economist added “wildlife control”, “huge exchange rate” and “inevitable possibility of adjustment”.. He foretold the latter “Whatever the panorama, it must be adjusted”. “This is not something that can be changed,” he said.
On the internal affairs of the government, this time raised by Economy Minister Martin Guzman, Miley said he did not believe in a “game between good police and a bad police ruling party.”. “Guzman is not the problem here. The problem here is that they think that the price level is determined by the salary. “ Noticed.
In this regard he specified that The current strategy of the government is to “frighten that if Guzman or Alberto falls, the cuckoo will come.”. “They say this and expect businessmen to support the disaster caused by them. “It’s nothing but nonsense,” he condemned.
In anticipation of 2023, the legislature has predicted that the political force he leads will “fight for the ballot”, except that Kirchnerism will not leave the second round. “We have some chances, given my level of popularity and the large number of young people who follow me, to finish them once and for all.Was mentioned.
“It’s going to be the real end of Kirchnerism. We are talking about a possible historical event. “Maintained and completed: “And if we reach that possible second round, I’m sure I’m going to become the new president of the Argentines.”
In the final parts of the interview, Miley provided details on how the final government will be formed. “All the referents that unite him will be hyper-orthodox liberals. “It means that each of them symbolizes the struggle to reduce the size of the state,” he suggested.
And closed: “My referents at this time will be the United States and Israel. I am not going to interfere with other countries like Russia. As for social plans, They will not be needed because it will be a job. And you have already heard about the banking and monetary reform that ends with the peso currency.
Source: La Nacion
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.