After elections, IMF appointed tough economist as new regional auditor who will monitor Argentina

The International Monetary Fund (IMF) has appointed an orthodox economist as a new regional auditor who will replace Alejandro Werner and play a key role in negotiations with Argentina; this is Ilan Goldfajn as Director of the Western Hemisphere Department (WHD) of the Fund.

The agency announced that “Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), today announced her intention to appoint Mr. Ilan Goldfajn as Director of the Fund’s Western Hemisphere Department (WHD) ”.

Goldfajn, born in Haifa in 1966, knows Argentina very well, speaks Spanish fluently and those who know him well have told Infobae that “he will not accept a light deal with Argentina” as some wish. government officials. A calm but jovial and skillful amateur football striker, he has been at the head of his country’s central bank in the governments of Dilma Rousseff and in the first leg of Jair Bolsonaro.

“Goldfajn will take up his post as head of the IMF’s department in charge of relations with the member countries of the Americas on January 3, 2022. He will succeed Alejandro Werner, whose retirement from the Fund had been announced previously,” the agency said. reference to that Jovial economist, but very demanding in his work and fervent defender of the autonomy of central banks.

If an Argentinian official had the fantasy that Werner – the last of the survivors of the deal negotiated with Argentina in 2018 – could be replaced by someone more heterodox, Georgieva’s statement pulverized that possibility.

“I am delighted that Ilan is joining our team as the new Director of the Western Hemisphere Department. He has impressive experience in both the public and private sectors and is highly respected as an academic. His proven track record as a politician and communicator, as well as his in-depth knowledge as an international financial framework and his familiarity with the work of the Fund will be of great value in helping our member countries in the region, ”said Georgieva .

Goldfajn was president of the Central Bank of Brazil (BCB) from May 2016 to February 2019, after significant experience as director of this entity with the legendary Arminio Fraga. “During his tenure at BCB, he oversaw the implementation of major regulatory changes that opened the door to new players in the financial services industry, spurred innovation and digitization, and fostered the growth of fintech companies that has had a positive impact on the financial sector. Brazil sector. In 2017, he was voted central banker of the year by The Banker magazine; and the following year, he was named best central banker by Global Finance magazine ”.

He was a student of Rudiger DornbuschHe has a well-known paper with the former Chilean minister Rodrigo Valdes in the American Economic Review and He is best remembered for having succeeded in keeping Brazilian inflation very low – even lower than that set in its system of objectives – with little intervention on the exchange rate.

Goldfajn is a well-known and well-connected economist in Argentina, both academically and in the market. Among his best local friends is the government’s first Central Bank President Mauricio Macri, Federico Sturzenegger, also an MIT graduate, with whom he shares a focus group with other former central bankers who today congratulate him on his return. at the bottom. ; In addition, the former chief economist of the Central Eduardo Levy Yeyati, the former deputy minister Pablo Guidotti and the former finance secretary, Miguel Kiguel, among others.

“It’s a very good title because he is a great economist, has academic and market experience, and because he knows the region very well. It will be nice to have him there, but the deal with Argentina also cools off after the primary elections as the IMF won’t want to sign anything until the political map for November is set.“Guidotti underlined Infobae.

It will be good to have Ilan in that position, but the deal with Argentina also cools off after the primary elections as the IMF won’t want to sign anything until the political map for November is defined (Pablo Guidotti)

“He’s a fanatic of the inflation targeting system and at the Central Bank of Brazil he was a hawk,” remarked Kiguel.

Golfajn was currently co-publishing a book with Levy Yeyati, whom he had met at MIT and IMF. (where they shared several football matches at the Bretton Woods club, the Brazilian as a striker and the Argentine as a full-back with projection) on the post-pandemic economy from a Latin American perspective, with contributions from economists from the region.

In 2018, he congratulated Argentina for its measures to reduce the public deficit and its intention to make prices more free; In addition, he argued that the two countries were on the same development path.

“Goldfajn’s private sector experience includes positions as chief economist and partner of Itaú Unibanco, founding partner of Ciano Investimentos, and partner and economist of Gávea Investimentos, three leading financial institutions in Brazil. Most recently, he was Chairman of the Advisory Board of Credit Suisse Brasil. He has also worked as a consultant for various global financial organizations, such as the World Bank, the United Nations and the IMF ”. He is the first Brazilian to achieve this post, held for the past two decades by the Argentinian Claudio Loser, the Indian Anoop singh, Chilean Nicolas Eyzaguirre and Mexican-Argentinian Alexandre Werner.

“He has taught economics at various universities in Brazil and the United States. He has worked as an editor for various publications, as well as writing and publishing numerous articles and books. Mr. Goldfajn holds a doctorate in economics from the Massachusetts Institute of Technology (MIT), a master’s degree in economics from the Pontifical Catholic University, and a bachelor’s degree in economics from the Federal University, both in Rio de Janeiro. Janeiro, Brazil ”.

Goldfajn has dual Brazilian and Israeli citizenship and “is also well known to many at the IMF, having worked as an economist at the Fund from 1996 to 1999.” I am very happy that Ilan is back with us at this crucial time, and that we can benefit from their exceptional experience while continuing to help the countries of the region to build more resilient and inclusive economies ”, concluded Georgieva, with words which will surely have finished the Argentinian economic team after the defeat of yesterday .

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