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Leading Argentine economist says that we must admit “IMF is incorrigible”

Friday, May 1st 2015 - 06:44 UTC
Full article 38 comments
“What the IMF says has to be taken as information and have the prudence to not owe nothing to them,” said economist Ferrer “What the IMF says has to be taken as information and have the prudence to not owe nothing to them,” said economist Ferrer
The IMF report by Alejandro Werner recommended austerity policies to balance the budget and a strong devaluation of the Argentine currency The IMF report by Alejandro Werner recommended austerity policies to balance the budget and a strong devaluation of the Argentine currency

Economist Aldo Ferrer has said the International Monetary Fund (IMF) was “incorrigible”, questioning the report the multilateral credit organism released this week saying Argentina should devalue on its peso currency and carry out austerity policies to get back on the track of growth.

 “There are economists who are planning to head back to the (International Monetary) Fund,” Ferrer, a former Economy minister, ambassador and university professor, told a Buenos Aires radio station, adding the organization’s recommendations were “useless.”

“What the IMF says has to be taken as information and have the prudence to not owe nothing to it,” Ferrer affirmed considering the organization commanded by Christine Lagarde “incorrigible.”

“The IMF always has its monetary perspective without considering structural matters.“

Earlier this week the IMF anticipated a 0.3% drop in Argentine GDP over the course of 2015, while recommending a devaluation of the peso and austerity measures in order to stimulate growth in the economy.

In the report ”Economic Perspectives: The Americas“, penned by Western Hemisphere director Alejandro Werner and Roberto Cardarelli, IMF Chile mission chief, the multilateral organization reiterated its gloomy prediction for the Argentine economy, and added that in 2016, growth will be limited to just 0.1%.

IMF pointed out that restrictions on trade and the exchange market have also created a large gap between the official and black market dollar rates. It admitted, however, that the gap has stabilized since the end of 2014 between 40 and 50%, with inflation still in double digits but falling.

The current account is estimated to be in the red to the tune of 1.7% of GDP this year and 1.8% the following year. With the primary fiscal deficit calculated at 1.6% of GDP for 2015, falling to 1.4% the next year.

Finally Argentina needs a combination of ”tighter macroeconomic policies, a weaker exchange rate (that is to say, devaluation) and fewer microeconomic distortions in order to lay the foundations for a return to stability and growth.”

Categories: Economy, Politics, Argentina.

Top Comments

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  • ilsen

    It seems most Argentine Economists could do with a thorough spanking from the IMF.
    They never seem to learn.

    May 01st, 2015 - 10:47 am 0
  • willi1

    ”...without considering structural matters.“...

    these structural matters are mainly located in the so called brains of the ck robberment and its followers and profiteers like aldo ferrer.

    May 01st, 2015 - 10:50 am 0
  • darragh

    This, presumably is the Aldo Ferrer who describes himself as an 'economic nationalist'

    Economic Nationalism:-

    “Economic nationalism is a body of policies that emphasize domestic control of the economy, labour, and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labour, goods and capital. In many cases, economic nationalists oppose globalization or at least question the benefits of unrestricted free trade. Economic nationalism may include such doctrines as protectionism and import substitution”

    No wonder then that he disagrees with the IMF

    May 01st, 2015 - 11:45 am 0
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