During this afternoon, the Córdoba Stock Exchange published a message on its social networks that means a strong blow to the national government. The reason? Prices Care.
According to the Economic Research Institute (IIE) of the Córdoba Stock Exchange, the relaunched “Careful Prices” program would reduce annual inflation by only 0.5%, even considering the best scenario. In other words, in a context in which inflation is in the range of 100% per year, the impact will be insignificant.
From the entity they explained that: “This negligible impact is explained by the fact that less than 5% of household consumption is covered by the products included in the program. In turn, in contrast to the benefits expected by the Government, shortages, which harms consumers even more”
In this sense, they maintain that “in order to consistently reduce inflation, a serious commitment is needed on the part of macroeconomic policy, avoiding regulating and hindering trade and production with sterile controls. Efforts should focus on reducing the unbridled pace of money issuance , eliminating the fiscal deficit of the National Government”
On the other hand, they also criticized the creation of different types of dollars in the current economic context, since this only represents “a new patch that avoids recognizing the deep imbalances in the exchange market.”