The International Monetary Fund admitted that inflation is a multi-causal phenomenon and that reducing it requires consistent macroeconomic policies and coordination efforts to help anchor inflation expectations.
The new postulate that breaks with the old and until that date entrenched thesis that the inflationary cause is the expansion of the money supply and the always accompanying fiscal deficit, was formulated under the title Statement from the IMF team on Argentina, on March 25.
In addition to recognizing that inflation is not only due to monetary expansion, the agency was surprising by recommending the application of a global tax to multinationals and maintaining an expansive fiscal policy and making direct monetary transfers to poor households.
Add that he admitted that economic concentration is a problem and can generate additional margins that impact prices and competition.
And incidentally, he expressed concern about economic inequality and access to vaccines.
“The IMF has not become a revolutionary organization nor is it the vanguard of the transformation of the capitalist system. It continues to be a conservative techno-bureaucratic structure based in Washington, ”he warns. Alfredo Zaiat, in an article published in the Argentine newspaper Pagina12.
For Zaiat, the role the IMF tries to play in the global debate may be forced by the merciless reality of the coronavirus crisis.
"Or, it stands out, for the renewed leadership of the Bulgarian Kristalina Georgieva, a European with a different sensibility for coming from a peripheral country and with similar restrictions to other emerging countries."
Whatever it is, the columnist emphasizes that “… the Georgieva Fund is sending explicit messages that if it is to preserve the functioning of capitalism as it is known in the West, international cooperation is necessary to implement specific unconventional measures”.