Tuesday, April 26, 2011

Headache 32 Weeks Pregnant

what these reserves (as the "candidates")

In advance of the work to prepare together with a colleague from CIPPEC (we will try to come out to light before the rapid decline in the number of candidates condemning him to a piece of time), I transcribe the table on the use and abuse of international reserves -theme in which all sorts of colorful proposals, viz.


As shown, there are those who reject the use of the reserves tax on the basis of legal arguments (to preserve the formal independence of the Central Bank as the CC or PRO), or to avoid an alleged inflationary effect (GEN, Rodriguez Saa)-which, as noted on this site more than once, should not exist if fund reserves and expenditure budget. In between, are located Alfonsin, Solá and PS, which accept the use of reserves to pay foreign creditors, under the supervision the National Congress in order to avoid a costly market access, not without noting that the difficulties of access to financial markets are a reflection of the failure of government policy on this front.

Interestingly, several candidates go even further than the ruling party and suggested the use of the reservations and to service external debt (or, strictly speaking, the fiscal deficit), but to finance the housing market (Cobos ) or the productive development (Duhalde, Sanz), "as they do in developed countries" (Solanas).

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