Miguel Ángel Broda: “We did not reach October without an acceleration of the crisis”

The Economist Michelangelo Broda He spoke about the lack of an economic program promoted by the Government of Alberto Fernández, delved into the acceleration of the crisis in all areas and blamed -in part- the IMF for “being complicit in the extravagant policies” of the Executive Power. During his time on La Cornisa, with Luis Majul, Broda stated that since Fernández took office “everything got worse”. “There never was an economic program. They always tried to control the symptoms but without ever looking for the real causes that generated them,” he said. Along these lines, and although he highlighted the help offered by the International Monetary Fund, he denounced that “after the acceleration of the crisis, even the Fund itself decided to throw in the towel with Argentina”. “Today he acts as an accomplice to the extravagant economic policies of this government”he completed. For Broda, “[el Gobierno] it has a logic inconsistent with economic theory and an enormous capacity not to learn. We did not get to October without an acceleration of the crisis. All this, forced because we have no reservations. We probably have to devalue and without having a program, which is worse”. Focusing on the escalation of the blue dollar, he was bearish and said that the rise in the US currency “has no ceiling” and anticipated: “If the clubs speed up, anything can happen. And we’re not just talking about a parallel dollar like the blue. This example can be extrapolated to all types of dollars.”He also spoke about the strategies used by ordinary citizens to avoid losing to inflation and emphasized: “No one burns bills. People buy goods or exchange the peso for a much more profitable currency. And I don’t see this changing anytime soon. There is no possibility to carry out a stabilizationRegarding the latter, the economist explained that “it is not possible not for a purely political issue but because, in order to carry out any program, pre-work to be done such as putting fiscal order, relative prices and encompassing that technical consistency with a good reputation of the Government”. Regarding what should be done to alleviate the crisis, he first remarked that “You cannot continue to increase public spending as it continues to increase.” “Another of the important problems that our country is going through are the inconveniences at the macroeconomic level. We cannot look the other way”, he said. The economist also harshly criticized Cristina Kirchner. In the talk with Majul, Broda considered that the vice president “it is believed that it knows everything: that it says that the fiscal deficit does not matter; that inflation is multi-causal, and that the markup is much more important than the issue”.She was later honest by saying that “being advised by Verbitsky and Kicillof is impossible” and continued with reproaches to the former president: “She has an enormous capacity not to learn. They want to intervene every day. Deadlines are getting shorter. The only thing that can happen now is that they hold on. there is no other”.“We are a country on Saturn. We are excluded from the world. We live our own reality. And it is not like that. What happens in the world does not affect us as much as the Government says. The prices are the same as in the pre-war. The rest of the countries are in a similar situation and do not have this kind of madness”, he said to finish.

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