he Former Minister of Economy, Sunday Cavallothis Wednesday, addressed what he perceives to be the most important issues posing to the government. To achieve exchange stability it is necessary to solve.
“In my opinion, it is very difficult to achieve an exchange rate stabilization plan with exchange controls.” I stated this as my first point. He made this statement when he was a speaker as part of a panel of “former ministers” at a United Nations conference. Latin American Economic Research Foundation (faithful).
Two important problems that Mr. Cavallo pointed out about Millais’ economic policy
The theme of the panel discussion was “How to reform the economy.” horse was powerful in analyzing decisions made in Money problems of Javier Millay’s government.
“No matter who is trying to initiate reform, the first thing they have to explain is what kind of economic organization they want to achieve,” he said.
“The idea of anarcho-capitalism is bad.. Every country in the world has a national sector that performs a series of functions and requires funding. And on the other hand, the private sector really Privately owned and competitively operated in an open economy” he added when putting the president’s proposed economic plan into context.
In that sense, he referred to the functioning of the economy and the constant fluctuations in the value of the dollar.
“In my opinion, it is very difficult to achieve an exchange stabilization plan with exchange controls.”“Io”he opined.
“The criticism I have made is that controlling change, ~ has many restrictions Financial transactions in dollarsrestrictions on corporations; “This is a very severe limiting factor in ensuring the sustainability of stabilization plans,” the economist pointed out.
“We are not in a position to think about a completely dollarized system. However, since it is a buy-money system, it works without restrictions. ” he insisted. “We must advance currency, exchange and economic freedom,” he asserted.
Along these lines, he developed:Convert Peso to convertible currency as soon as possible, not in the sense of fixed exchange rate“But since there are no restrictions or exchange controls, it is truly convertible and you can go from pesos to dollars and dollars to pesos.”
“Unavailable without reservation”
“It is impossible to think that you can function without reservations or without negative reservations. Moreover, if at some point we have to remove the shares of a corporation, how do we ensure that we do not expect a devaluation?” Cavallo said as he introduced other strong criticisms of the government.
“In order, The dollar must be declared as legal tender. It is similar to Peru and has a bi-currency system that works very well. The important thing is that it has a lot of reserves itself,” he added.
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