IT WON’T BE EASY, YOU’LL THINK IT STRANGE:
If Javier Milei is successful, the world will talk about the Argentinean miracle”: An Interview with Marcelo Duclos (José Papparelli, November 26, 2024, European Conservative)
I would say that the most important thing is something that at first glance nobody notices and yet is key for the economy: the fall in the so-called “country risk” index. That is, the decrease in the indicator that measures the probability that a nation will default on its financial obligations, such as the payment of its external debt. This also means that the economic measures begin the capitalisation of the Argentine economy. However, the average worker does not yet perceive this. The important thing is that this macroeconomic consolidation will inevitably put an end to the fiscal deficit at the national level, with an historic adjustment in unnecessary spending and without resorting to printing banknotes to end the deficit and inflation. This represents another momentous change whose central objective is the promotion of economic development and the strengthening of the competitiveness of various economic sectors. In other words, in the macroeconomy, there is a fundamental correction of issues that today seem intangible, but that will be reflected in the daily lives of Argentines in a very short time.
Is there something that the citizens can perceive today in concrete terms?
Of course, inflation control. We have to take into account the government’s very important monetary correction that put an end to the state’s sources of financing through monetary issuance. We must remember that we had a president, Alberto Fernández, who said that inflation was caused by “demons.” The question of uncontrolled price increases is key, and I can say that, in Argentina, the problem of inflation is now history. Logically, the question of updating tariffs and services has meant that people have had to realise that things are worth what they are worth, and that has its consequences.Now, when almost every day goes by with purchases not increasing in price, the moment of truth has arrived and, finally, reality ends up imposing itself. Another example is the overnight solution of the rent crisis, with the repeal of the law that fixed the market price—paradoxically, the opposite of what Sánchez and the communists did in Spain! This is also tangible for Argentines.