For the IMF, "inflation shows that it is more rooted than we think"

"The Argentine government may have oversold what it could do and investors have bought it naively". The sentence belongs to the head of the Western Hemisphere of the International Monetary Fund, Alejandro Werner, and delivered it in New York, to paint a picture of the challenges and challenges that the economy still faces.

Now, he says these investors "punish the Argentine authorities for their mistakes and the misconceptions that it was possible to move from Argentina to the Kirchner to what we see today in Chile or Mexico. "It was not by criticism, but as a recognition of disappointed expectations.

Werner also admitted that there was a miscalculation in the fight against inflation, which started the year above the official expectations. "It is shown that he is more rooted than we think," said an IMF official. However, he was confident that the zero emission monetary policy would ultimately be profitable. When there is an inflation of 40 or 50%, he said, the fall is not immediate. "We have seen it in other cases," he said.

On the flow, Werner also noted that the next government, whatever its sign, will have to deploy "greater efforts in structural reforms" What the Argentine economy needs One of these challenges, he said, will be to achieve a better level of investment in order to bring it closer to 22% of GDP.

In addition to these debts, the Fund Manager stated that The economic policy of Mauricio Macri's government "goes in the right direction", with a "good application of the program" agreed with the Fund. And he was sensitive to the difficulties of the present when he baderted that the current government had received a "heavy legacy" after a decade in which the Kirchner government had "destroyed all institutions".

"We have to institutionalize a lot of things in Argentina," he said. "The agreement with the Fund replaces a little lack of institutional, for example in terms of tax policy," he said.

Werner spoke to investors, businessmen and Latin American experts in a forum organized by the Council of the Americas, dedicated to the prospects of the economy of the region. The Argentine case a lot of attention and looked at the early stages of the Jair Bolsonaro in Brazil and New scenario that opens in Mexico.

The evaluation of the third review of the program for the period of $ 57,000 million to three years, signed by Argentina and the IMF, announced Werner, will be announced soon. "The mission is completing the review and will be made public once the board of directors approves it"he said. The economist Roberto Cardarelli and his technicians have completed this week their badysis of the figures of the economy as part of a mission marked by the contacts maintained by the head of mission for Argentina with the leaders of the opposition. The Fund is expected to make a new disbursement next month.

In one of his last public appearances, Werner admitted that see a risk for the program that Argentina has signed with the IMF in case of change of government in this election year. Today, the head of the Western Hemisphere's fund department has been careful not to repeat this concept, but has highlighted the debts the current government will leave to next or next if Macri is re-elected in October.

Inflation control is at the top of the list. But the fiscal commitment must also be maintained. "There is a backward fiscal framework"he said.

Another point that stands out is the reform of the central bank charter led by Guido Sandleris. "This is part of the agreement's commitments, the government will send it to Congress and this should be in the spirit of the modern and independent central banks of the region," he said. . It will not be overnight, he admitted: "We must combine a narrow and transparent monetary policy and, at the same time, begin to set up an independent institution for the next steps of the stabilization process".