Joaquín Cottani criticizes Argentina's monetary and exchange rate policies

Joaquín Cottani, a former economic official who served on Luis Caputo’s team, has criticized the current monetary and exchange rate policies of the Javier Milei administration. While expressing support for long-term fiscal discipline, economic openness, and structural reforms, Cottani argued that short-term strategies are failing to produce results and are stalling economic activity.

Cottani proposed the liberalization of the exchange rate to establish a single, market-determined rate, noting that current official interventions and restrictions create uncertainty for investors. He suggested that a more flexible monetary policy is needed, specifically advising the Central Bank to stop sterilizing pesos used to purchase reserves.

Furthermore, Cottani suggested that the government should be willing to tolerate monthly inflation rates of up to 3% or 4% in exchange for a more competitive exchange rate, asserting that fiscal balance would prevent an inflationary spiral.