11/25/2020 12:54 PM
Clarín.com
Economy
Updated 11/25/2020 12:54 PM
For the president of the Central Bank, Miguel Angel Pesce, the monetary policy carried out by the entity he leads was successful since "inflation is at lower levels than in previous years."
This was said in the closing panel of the Monetary and Banking Conference organized by the Central Bank, which due to the coronavirus pandemic took place virtually.
Regarding the interest rate paid to savers, he said that they were looking for "real rates that compensate for inflation."
In other words, with these rates, he
recognized that it is not possible to beat prices,
which are positive real rates.
“We wanted the interest rate that savers received to be real, to compensate for inflation.
I think we are achieving that ”, he said.
Regarding the dollar, he said that they tried "not to delay the exchange rate" and that they consider that
"today it is competitive."
"It was a very difficult and very complex year," he said at the end of his presentation, after mentioning that tools were made available "within the framework of the pandemic to assist SMEs with productive financing;
to be able to assist consumers ”and also that they
assisted the Treasury
“ with the financing it needed to be able to implement the assistance programs ”.
For these reasons, he considered that the task they carried out "until now was effective."
The monetary and banking sessions of the Central Bank took place throughout November virtually.
The closing, in charge of the president of the entity, Pesce, was accompanied by the minister Martín Guzmán and by the nobel prize and mentor of the minister, Joseph Stiglitz.
In his speech, Pesce considered that "policies must be agreed to reverse this situation and for the global economy to grow again," and said that "an answer to that has not been sought so far."
Although he highlighted that "the instruments of
direct subsidy
to consumers or companies that have emerged with the pandemic have worked," he pointed out that "what we do not know is whether, once the pandemic is over, it will be accepted that these instruments continue."
Along these lines, the head of the BCRA referred to the dilemmas currently facing central banks, and wondered “how far can they continue to expand their balance sheets, how
far can countries continue to expand their debt without generating doubts for investors
".
"The growth in the value of financial assets is not validated by substantial growth in the product. This situation of imbalance between growth and the value of financial assets will undoubtedly at some point have to be honest," said Pesce.
Faced with this scenario, he argued that "tax schemes, especially those in central countries, have to respond to the regression in the distribution of income."
NE
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