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The harsh reality of inflation versus the sweet fiction of price agreements

2023-03-14T20:36:26.540Z


The CPI finally exceeded 100% year-on-year. The acceleration coincides with the multiplication of agreements.


What will be the next choreography that Minister Sergio Massa and Secretary of Commerce

Matías Tombolini

will devise to announce a new price agreement?

It is also worth wondering what new basket he will try to put together to put it under the

Fair Prices program.

The economy entered a

three-digit annual regime,

with which

it is no longer known what a price is, much less if it is fair or not

.

The price agreements, their ads with a very attractive image design, are somewhat

choreographic and even theatrical

.

For them to work, the public - all of us and officials too - have to suspend credulity.

Like in theater or cinema.

What is it about?.

Wikipedia sums it up:

“Suspension of disbelief is an expression that represents a subject's willingness to put aside (suspend) their critical sense, ignoring factual facts and their knowable perception of reality in the work of fiction in which he is immersed, allowing him to enter and enjoy the fictional world exposed in the work”.

Fully applies to price agreement announcements that have been presented at the Kirchner Cultural Center.

First it was a wide basket, then importers joined in exchange for guaranteeing them dollars at the official price, then sellers of popular cuts of meat, vegetables and fruits and even clothing.

They didn't work.

Neither are the scenes in which militants, mayors or trade unionists act as if they control prices on shelves or in distribution centers.

Pure choreo.

Since Sergio Massa and Matías Tombolini used price agreement announcements as part of their personal political campaign,

inflation has not stopped rising

.

For weeks Massa himself must have bet on the suspension of credulity to make society believe that in March or April the CPI was going to

"start with 3".

Former President Ronald Reagan

was once

asked if it had been difficult for him, as an actor, to be President of the United States.

Reagan responded that he did not imagine how someone who was not an actor could serve as president of the United States.

Argentine officials act as if they do things to lower inflation, but intimately they know that such agreements are useless.

To justify "the 3 forward", Massa revealed that it was actually a way to

"anchor expectations".

The minister's strategy is totally understandable.

Massa and we suspend reality.

All this occurs just one year after President Alberto Fernández emphatically announced the start of the war against inflation.

Source: clarin

All business articles on 2023-03-14

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