Argentine central bank dismisses IMF warning on risk of overheating economies

Friday, September 23rd 2011 - 07:45 UTC

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Mercedes Marcó del Pont: “we don’t have a consumption bubble”

The Argentine Central Bank Governor Mercedes Marcó del Pont dismissed the IMF’s warning on the risk of overheating economies in developing countries.

“In Argentina the increase in consumption is linked to the recovery of wages, jobs growth and the redistribution of income,” Marcó del Pont said in Washington, where she is participating in the IMF’s and World Bank’s assembly.

“We don’t have a consumption bubble triggered by the entrance of short term capital, like there was in other countries, because we have the right regulation for those kinds of funds. The expansion of credit in Argentina, unlike what happened in other countries in which the crisis was originated in, has the support of the recovery of income and of jobs,” Marcó del Pont stated.

The Central Bank Governor met with her Brazilian, Mexican, Chilean, Peruvian and Colombian counterparts. During the meeting, the officials evaluated the international financial situation and analyzed the behaviour of capital flow. They agreed to face a regular monitoring of the global crisis development and do it in a coordinating way between all the regional Central Banks.

The IMF World Economic Outlook said “policies need to be designed to address two offsetting forces: containing domestic overheating pressure and the buildup of financial vulnerabilities, while responding appropriately to the souring external environment. In this context, efforts thus far to normalize monetary policies to a neutral stance are welcome, although in countries where inflation pressure has lessened, a temporary pause in monetary tightening could be considered until uncertainty abates”.

The report then specifies that further monetary tightening is likely warranted in a few economies where overheating risks appear more imminent: Argentina, Paraguay, and Venezuela.

Categories: Economy, Argentina.

Tags: Argentina, Argentina Central Bank, IMF, Mercedes Marco del Pont.

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Rubino84
Well well well, been reading since 2003 that the economy will colapse, fly of capital overheating, etc etc etc...

Now we are nearly in 2012 and the economy wont stop growing: 9% this years, 8% next year (only second to China) and the IMF World Bank and all those who have been predicting catastrofic consecuencies for my country will have to swollow all those words... AGAIN! 8º)
Sep 23rd, 2011 - 09:42 am 0
Dr Carrizal
Hmmm...
Have a look at her family history and their involvement in the Argentine economy - rape, pillage and plunder of every centavo they could get their grubby hands on...
Sep 23rd, 2011 - 12:28 pm 0
yankeeboy
Part of the reason the predictions of the imminent economic collapse has been off is because no economist thought that the Ks would plunder the country's private assets, Anses, Banco Nacion, Bacra the list goes on and on. There is no way the gov't could have survived if they didn't steal all of the hard currency out of the country. The problem is now its gone you can't steal it twice, USA is shutting off Intl bank funding so that cash flow is going to be gone next year too. BACRA funds are depleted and Soy is crashing, now what? CFK should take her stolen millions and ugly children and move to Miami or she better keep a helicopter at Casa Rosada to help her escape when the riots start again.
Sep 23rd, 2011 - 01:39 pm 0

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