The monetary base increased 24% since December 10th complicating the economy

As of June 23, the BCRA had issued 200 billion pesos ($2.84 bn) to finance the Treasury through the transfer of accounting profits. For the time being, the financing of expenses by issuance would be equivalent to 64% of the estimated tax revenues in June. In the absence of an economic plan, the government is only attempting a forward flight with more quarantine, monetary issuance and BCRA debt, generating a substantial increase in quasi-fiscal spending. The economy is becoming more complicated, as we can see from the drop in the level of activity, the rise in unemployment, poverty and repressed inflation.

Source: Infobae

Categories: Macroeconomy/Finance