Argentina is the most generous country in the world. It won the lottery, but decided to give up the prize. I can send it to or leave your comments on our website Argentina What Will the Coming? What will be the next Argentina? According to Marcelo Longobardi (who acted as moderator), and hinted that the exhibitors, unfortunately I must say that not unlike Argentina, which is today. Is that the government has many limitations to change their speech, because the pressures facing the various sectors are numerous and a change in strategy may undermine the “unstable equilibrium” in which it stands. Sorry I excited into thinking that the stage was coming to Argentina was positive change, but the feeling is that will continue on autopilot. Since neither I think then you’re moving toward Argentina, is that I would like to share with you the thought of “where should go,” according to these distinguished speakers. In that sense, Roberto Frenkel (large university professor and researcher holder CEDES), understands that the first thing you should do is a clear policy to fight inflation … What does this mean? What he means is the inflation problem openly acknowledge and publicize the decision to fight against him, which must be transparent the true rate of inflation (which is around 25% -30%).
Tag: investment
Inflation
This situation of increased inflationary pressures and a provision that encourages consumption, generates the feeling that it may be approaching a period of rising interest rates. Market analysts are pessimistic about inflation, believing that it is unlikely that Central Bank of Colombia to meet its inflation target for this year. In this situation, it is logical to expect the Central Bank of Colombia decided to increase its benchmark rate, as is expected from the market. But the Central Bank’s monetary policy in Colombia is facing a dilemma every time you decide to keep or raise your interest rate. Is that the high level of the same, together with pressure on currency appreciation and context of stability of the Colombian economy, generates a more than attractive to foreign capital. These foreign capital as valued and desired by the economy, are creating problems for Colombia and that influence the exchange rate affecting the competitiveness of the Colombian economy.
That is why the Ministry of Finance decided to raise from 40% to 50% on unpaid deposit is required for portfolio investment into the country, established by the Government just over a year. In addition, the Government set a time Minimum stay of two years for a Foreign Direct Investment (FDI) entering the country. Logically, these measures have drawn criticism mainly by those affected, such as large foreign investment banks. But from my point of view, is a good measure to limit the negative effects generated by the rise in interest rates. It is true that these measures undermine the free movement of capital, but I understand that sometimes it is one of the few viable alternatives exist to speculative capital. From my point of view, the message is clear Colombia: “Colombia gives all the guarantees for capital income, but that they do not want to undermine the stability of the economy. It is therefore encouraging to those seeking to invest capital and to remain a good time in the country. “