The Central Bank of Argentina could play a key role in economic policy that has so far avoided, in part because as a result of the amendments to its charter favored by Menem and Cavallo in the 90's has gendarme reduced to mere monetary issue and
part because it has been colonized by financial interests that refuse to finance production.
is not the main subject of this review, but not shy away from giving our opinion: we think that stocks are not the Central Bank but all Argentines and should be used for collective benefit and not vegetate the hope that through a new process of capital flight or a coup d'market them to appropriate financial speculators, as happened historically.
Behind the proclaimed "independence" of the institution are hidden speculative interests that are fighting to maintain the status quo.
Hours before the Joint Economic Committee of Congress issued its behavior analyzed the opinion recommending dismissal, the former chairman of the Central Bank introduced a belated resignation finally rejected, as it had begun the process for removal, and did so by deploying a step-shaped comedy news conference that he did not waste.
It was proclaimed author of all the economic developments of the period 2004/10, defender of the reserves, the salary of the Argentine and savior of the republican institutions.
He even had the luxury of declaring "maverick consistent" economic, in referring to the impact of monetary policy in controlling inflation, but when he mentioned the measures that would put cap on price increases, they were all orthodox character.
spoke of public expenditure control, collection (which is a neutral term) of incomes policy (he meant the joint top?), A moderate monetary issue and generating more supply in the economy through "market opening", all without blushing.
As another note of this edition discusses the role of media in democracy, it does not hurt to ask why none of the many independent journalists attending the press conference, cross-examination about such measures as the "opening markets, "which proposed the" maverick consistent "Redrado, who seems to have forgotten that opening the economy operated in Argentina for decades, destroyed the domestic industry, the level of employment, wages and sprayed the crisis erupted in 2001.
Then, incredibly went on to emphatically deny that the interest rate, ie the cost of money, have a bearing on the price increase on the economy operated.
believe that it is not worth to continue reviewing the "virtues" techniques and Republican former chairman of the BCRA, however it is important to analyze the role of the Central Bank, and require the institution to regain its role of authority in financial matters, such as Redrado and eluded to his predecessors, who did not implement effective mechanisms to stop capital flight, which only in the 2008/09 biennium is estimated at 40,000 million dollars (which they eroding the level of reserves and prevented that may accumulate in greater quantities), or to provide production credit at reasonable rates (which does prevent increasing the supply of goods in the economy and therefore generates higher inflation).
are aware that inflation is a phenomenon whose origins recognizes one cause, but one of them is precisely the cost of money that banks increased at will without the Central Bank has done nothing to prevent it, rather the opposite .
These issues are of crucial importance, because to protect and increase the level of employment is necessary to rebuild a financial system that promotes productive activities, not speculative to sustain the purchasing power of wages is essential to protect against inflation by increasing the supply of goods, not by "market opening", which lead to known forever, but by production growth, which can not be done at the appropriate level without credit expansion necessary medium and long term.
At a time in Argentina and the world is debate about the role of the financial system, it is worth recalling as we expressed in March 2009 on "Reflections on the global financial crisis" that the Banking Association, has long promotes the reform of the Financial Institutions Act inherited from the dictatorship, and democratic institutions must act to assure the nation that the public service provided by banks to develop in harmony with the interests of society as a whole.
The Central Bank can not remain a mere spectator isolated from the collective fate or worse, act covered up the greed of speculators ever.
The bank will resume in March the joint negotiation, as we have said many times, represents a fundamental tool for the defense of our interests, but the orientation to take public policy will also impact decisively on the lot of them.
The appointment of new officers in front of the BCRA, as expressed by the Bank, it is promising and consistent with the objectives of promoting production and employment as defined by the national government.
Congress of the nation must ensure the tools for the Central Bank and the financial system are at the service of these important goals.
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