Argentina did not learn from mistakes of past economic crises, says economist

It is difficult for Argentina to “find the economic trajectory it needs”, as it continues to “make the same mistake as always”. This is what the professor and chief economist of the Voiter bank, Roberto Dumas, defends.

In an interview with CNN Radio he assesses that Argentines “have learned nothing from the economic crisis of the 1980s.”

“The unorthodox policy of helping others with monetary issuance generates more inflation, which is already hitting 90% a year and can reach triple digits. The current situation is one of inflation crisis and exchange rate crisis, as Argentina has no dollar and may have shortages because it has limited exports,” he said.

This fiscal and social crisis is compounded by artificial price controls, which, Dumas explains, “cannot work.”

The economist does not believe that putting a “super-minister”, Sergio Massa, at this moment will mean major changes. “It looked like an attempt at political reconstruction and to give governability.”

According to Roberto Dumas, what should happen is a maximal exchange rate depreciation. “This is the way to try to restore supply and export power, but it raises inflationary pressures, there is no easy measure.”

“If you look at the history of Sergio Massa and the government as a whole, they are not reformers, with a new plan to take Argentina out of the quagmire, it will be a ‘rice and beans’ program trying to push with the belly until the elections and must suffer between trips and welcome”.

Despite the global economic crisis, the specialist sees the situation in Argentina as 80% internal and only 20% the result of the external scenario.

*Produced by Alessandra Ferreira