Elite economists turn yellow light on the Sandleris plan – 11/11/2018



Picante is the closing panel of an international conference in which yesterday spoke about the aims of inflation in Argentina and in which the president took a chair. Central Bank, Guido Sandleris. They opened Miguel Kiguel (governing mode) with him, Guillermo Calvo (University of Columbia, New York), José Darío Uribe (who was the president of the Central Bank of Colombia) and Augusto De la Torre (Who was President of the Ecuadorian Medium Bank and the World Bank's Chief Economist for the area).

From its first summary the pronunciation of the speech was raised: Calvo, De la Torre and Uribe; talk about experiences and suggestions (when Kiguel asked them). & # 39; Counteratackack & # 39; Sandleris. "In the weekend I was camping with my daughter. Everything had a formula to reduce low and to consolidate the dollar. Each one has a share and explains it to you", He responded after his first round of the progress of his panel colleagues.

Calvo was looking down at that time. Earlier summary he was saying about the cash and exchange program. "It will be tested, there is little scientific evidence about what Argentina is doing. "Then he said:" Policies that use cash assemblies [N.E.: se refirió al control del crecimiento de la base monetaria] they are likely to be more wrongOn the other hand, those who maintain their exchange rate take some summer. "The American Committee of Finance today said that the exchange rate would be updated to 1% per month from April to stop the experience and lower interest rate.

De la Torre was also on display & # 39; against the money policy in the previous one. Affecting the effectiveness of control of "assemblies" to lower inflation, at a & # 39; Fewer of Argentina's rated levels for ten years. And he stressed another problem: an salary. The Ecuatorial remembered that people had a salary situation and prices; including past inflation. And to return it, "change in the structure of expectations" must occur. He named "the policy to abolish those behaviors."

Uribe explained, for his part, that he had been in Colombia almost ten years to defend his economy. "Make sure you do not" press ". "Everyone has an economist inside"he said. The BCRA president confirmed Uribe's sentence by balancing a partnership weekend.

Sandleris was proposing where there is a cash policy on his head. "The main goal of this central bank is that Argentina can live with high-level higher-level levels. This is not something from one day to the next one, we must continue forward. "And he said" the context requires the Central Bank to be very real aware"

It was organized by the UTDT, CLAF and Banco Ciudad.

Ultimately, Calvo warned Argentina to include a shift on capital flows that, going from developing to developed countries, "a process that has not yet finished." This means that the economy needs to be changed, and # 39; including wages in dollars. "They need to fall bigger in real terms"he said. "The problem is the public salary: it is trying to be registered".

Calvo sees the risk of inflation to & # 39; scattered as a result of this, as he lost the exchange rate after reducing it. "We need to be careful because the exchange rate will be back, especially if the pressure on the State continues." He mentioned the case Israel in the eighties. "The current situation can be complex but not due to financial policy but with the right sector," he said, taking responsibility for his / her. Central Bank. "Israel has made unions with the unions. Rural danger is a political danger. And without political support, the situation can be sorry"


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