Sturzenegger criticized the fiscal program and the inconsistencies of macrismo

Former Central Bank President Federico Sturzenegger gave a presentation at the Brookings Institution, a Washington-based think tank, where he presented his vision of the country's current situation.

"Although the macroeconomic legacy received by the government is not ideal, it can not be held responsible for the results," he describes in the chapter "Lessons learned from experience." Nor does it attribute bad luck, although the drought resulted in a loss of 2% GDP.

"In the end, the problem lies in the policies decided upon: the deterioration of fiscal policy in the first place, then the choice to bet on short-term growth, even at the expense of monetary institutions and inflation. "

Revised after STEP, the Sturzenegger paper states that the primary elections were a blow to the government and increased uncertainty.

"While Macri was apparently looking for a defeat at the polls, the end of the four years was marked by an acceleration of inflation and a devaluation, as the monetary situation seemed again uncertain," according to Profile.

On the Lebac, meanwhile, acknowledged that there was controversy but considered that the risk was in the way of canceling them. In the brief, he states that there were disarmament errors.

Capital controls have come back in recent weeks. Although the BCRA has followed the steps of the executive by eliminating the restrictions – the latest with the arrival of Nicolás Dujovne -, Sturzenegger acknowledged that the measures made it harder to read inflation. because of the effect of capital inflows.

The professor at the University of San Andrés baderts that gradualism was a political and not an economic decision. The risks of increasing the debt or a "credit event" were clear, badyzing one of the two signatories of the agreement with the IMF, announced as "preventive", for $ 57,000
millions

Sturzenegger notes inconsistencies between the inflation reduction program and budget needs, which has resulted in a change in inflation targets and corrections in the agreement with the IMF. "Was the inflation target too fast and aggressive?" Asks the former manager.

Possible departures

In memory of the conference of December 28, 2017 in which they had announced an inflation target of 10% for 2018 already become "same", the economist said that in the prelude of this day, the Treasury wanted to slow the decline in inflation for fiscal and financial reasons necessitated shorter maturities for Lebac, while other cabinet members wanted lower interest rates , so many challenges for the policy of the plant.

For its part, Macri had decided to change the inflation targets, although "the leitmotiv of the Central Bank was that a change of objective means the lack of objective ".

By the time the 28D conference arrived, the president had decided to change the president of the BCRA if necessary, Sturzenegger announces in the third person his departure.

The criticism of his successor in the BCRA, Luis Caputo, comes next for an excessive fall in the interest rate and interventions on the foreign exchange market, which "have raised doubts about monetary policy," he said. economist, now also consultant.

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