According to economist Ricardo Arriazu, Argentina is cheaper than the United States when considering the entire basket of prices, but the problem lies in the lack of income due to the country's poverty. Arriazu pointed out that the perception of backwardness in Argentina is due to the difference between current prices and historical prices, which represents a challenge since this gap is larger than the Gross Domestic Product.
Regarding the exchange rate, Arriazu believes it should be controlled and stable, not free while being used as a unit of account. He considers that Argentina operates with two monetary units: the peso for daily transactions and the dollar for the rest. The consultant emphasizes that in the exportable field, the country is slightly cheaper than others, while in public services and general expenses, it is significantly more economical.
Arriazu expressed his concern about the possible consequences of a float of the exchange rate like in 2018 and questioned President Javier Milei's sympathies for this measure. He also criticized the International Monetary Fund for not understanding the country's monetary economy, which has led to incorrect recommendations about the exchange market.
The economist believes that completely lifting currency restrictions in Argentina in the current situation could provoke immediate hyperinflation, so he suggests a gradual lifting of the restrictions. He argues that stopping the carousel of relative prices is essential to control inflation. Arriazu warns that the necessary conditions for a total liberalization of the exchange market have not yet been met, despite the government's promises to do so before the end of the year.
