Change of Discourse?

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Change of Discourse?

Second week
May 2022

Minister of Economy, Martín Guzmán, has changed his speech. On more than one occasion this week he made statements that are more similar to what we professional economists have been saying than those he himself said in his role in the government. He pointed out that the country cannot have a permanent deficit, much less finance it with monetary issuance. He also said that economic subsidies (for energy and transportation) are unsustainable. And both Guzmán and Matías Kulfas, minister of production, emphasized that inflation is a macroeconomic problem, downplaying the concepts of interventionist policies and various controls. Guzmán said it in front of the media and again in front of businessmen grouped in the powerful Amcham, the chamber of commerce that brings together firms of US origin.