An unexpected turn: Mileinomics reaches for “Keynesian” measures to revive the economy
The government is deepening a strategy to mobilize the dollars and pesos already in the system to spur lending. Experts say it may not be enough La entrada An unexpected turn: Mileinomics reaches for “Keynesian” measures to revive the economy se publicó primero en Buenos Aires Herald .
The government of Javier Milei has recently introduced a series of economic measures aimed at reviving domestic demand and revitalizing the Argentine economy. These measures include opening up dollar bank lending to all companies, seeking a wage floor of AR$1 million for gross registered wages, and using funds from the ANSES pension agency to provide banks with liquidity to offer lower interest rate mortgages.
However, critics argue that while these measures may provide some short-term relief, they fall short of the government's goal of stimulating consumption and lifting the economy out of its current slump. Economic activity fell 0.8% month-on-month in July, and both year-on-year readings were flat, with investment down 8.8% and consumption down 0.6%.
The mortgage plan covers only 18,000 loans, which the analysts believe does not have a significant impact on the property market. Similarly, extending dollar loans to companies may provide liquidity to a limited number of firms with genuine projects, but the main bottleneck in the local economy is the weakness of domestic demand.
The wage floor, on the other hand, points in the right direction but amounts to a marginal improvement since many collective bargaining agreements already have gross wages above that figure.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- An unexpected turn: Mileinomics reaches for “Keynesian” measures to revive the economy buenosairesherald.com
