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July 29, 2014
Tuesday, April 22, 2014

'Argentina has drugged itself with inflation'

Head of Fiat in Argentina, Cristiano Ratazzi.

Head of the AEA business association Jaime Campos responded to Cabinet Chief Jorge Capitanich who had said earlier this morning that “the best businessmen can do is not to raise prices.” The federal government is "responsible" of inflation, Campos affirmed.

Yesterday, a group of business leaders released a document questioning the economic agenda of the Cristina Fernández de Kirchner administration. In his daily brief to the press, the head of ministers hit back urging private-sector leaders to cooperate in the fight against the rise in prices.

“We don’t think ours is the revealed truth but it could be an useful contribution to the country,” the president of the Argentine Business Association (AEA) told reporters, defending Monday’s report.

“We demand a firm measure to lower inflation that is affecting workers and complicates the business activity a lot. We demand tax pressure to be lower,” Campos added and considered the government should work on three mainstays in its battle against inflation: “The fiscal policy, the monetary policy and income policy; politics’ leadership must be in the hands of authorities."

“Businessmen can carry out an individual price rise if costs rise but that is not inflation. Inflation is the generalized rise of prices; when prices in the economy rise it is not a decision of businessmen who came to an agreement (to rise prices) but the macroeconomic conditions that determined the rise,” Campos insisted. “An anti-inflation policy must be carried out and it is authorities’ responsibility.”

"Drugged with inflation"

Aligned with Campos’ comments was Fiat’s leader Cristiano Rattazzi who assured today “Argentina has drugged itself with inflation.”

“Inflation is not cured with divine things. We are coming out from a period and going through a very slow transition toward something a little bit different,” Rattazzi said in statements to media and accused the government of failing to head off the surge in inflation.

“They allowed inflation to grow, grow and grow and an economy to get drugged with inflation. Inflation is something that takes it time to come up and also takes it time to go down,” the Fiat chief who backed yesterday’s document stated.

“When clear and modern rules are set, everything will go improving. There is wealth in Argentina for people to be ok,” Rattazzi said.

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Tags:  Cristiano Ratazzi  FIAT  AEA  Jorge Capitanich  cabinet chief  inflation  drugged  





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