Hernán Lacunza intervened in the discussion between Cristina Kirchner and Javier Milei

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Javier Milei and Cristina Kirchner are involved in an intense dispute on social media for the direction of the Argentine economy. This exchange added the participation by former Minister of Economy, Hernán Lacunza. The head of the consulting firm Empiria analyzed the dynamics shown the Central Bank reserves and the official exchange rate and agreed on one point with the former president.

“@CFKArgentina is right about one thing,” wrote Lacunza, in a post through his X account (ex-Twitter), where He insisted on the imbalance shown by the external sector and the risks of the economic scheme which the Government supports today.

“To normalize the exchange market, the level of stocks (reserves vs. liabilities in pesos) is not as important as the exchange rate that balances the flows.“, Lacunza explained about one of the axes of the debate between the former president and the current president.

“To normalize the exchange market, the level of stocks (reserves vs. liabilities in pesos) is not as important as the exchange rate that balances the flows,” wrote Lacunza.Ricardo Pristupluk

The approach of Lacunza warns that, beyond the level of reserves of the BCRA and liabilities (Leliq, passes or the monetary base), The destabilizing factor may be due to the external deficit that stimulates the current level of the dollar. It is an issue that Mauricio Macri’s former minister (2019) warned about on repeated occasions. While the Government focuses on achieving a reduction in inflation, holds the scheme of crawling peg at 2% per month for the official dollar, which in fact implies an exchange rate appreciation which ultimately impacts Argentina’s competitiveness and ability to generate dollars through exports.

“The restriction is not external, but internal: it is not that we do not generate dollars, but that we cannot retain them voluntarily (without restrictions) due to bad policies.“Lacunza added in his post, warning of the consequences generated by the exchange rate restrictions, which discourage exports and generate greater incentives for imports, with a greater demand for the official dollar that impacts the Central Bank’s reserves.

“The risk is getting used to those laurels, so to speak, entering a comfort zone and not moving forward with the reforms that are needed to lift the restriction, which must be done as soon as possible,” Lacunza had said in an interview with THE NATION, when analyzing the Government’s commitment to maintaining monthly devaluations of 2% and the persistence of exchange controls.Getting out of the trap is a necessary step to grow again“, he insisted.

The dispute between Cristina Kirchner and Javier Milei began today, after the publication of a document by the former vice president where she presented her views on the “bimonetary economy”, the problems with “the debt”, the dollar, money and the labor market. “Nine months after the arrival of the president to the government, First global anarcho-capitalist experienceonce again and as always, Reality prevails over extravagant theories, incendiary speeches and marketing phrases“, wrote the former vice president.

This statement generated responses and a series of taunts and provocations on social media. “Don’t be so nervous,” Milei wrote, adding that today she will give an “ad honorem class” to respond to the former president.

On this point, Lacunza also wrote: “Argentina is not the death of economic theories, but life: when we want to rewrite the books, we do badly.”

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