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"IPOM shows that better times will not come" "Diario y Radio U Chile

In an interview with Radio Universidad de Chile, MIT called for caution after analyzing the December report on monetary policy (IPOM) recently published by the central bank.

Thursday 6 December 2018 7:45

Andrés Solimano

Massive Economist of the Massachusetts Institute of Technology (MIT) Andrés Solimano said the economic projections outlined in the recent report on monetary policy (IPOM) show that "better times do not come".

In an interview with Radio Universidad de Chile, he said that the document issued by the central bank, which corresponds to December, provides a self-explanatory note for discussion because the economic authorities celebrated the content of the report.

Former World Bank Director Andrés Solimano said he must be realistic about the projections expressed by Chile's implementing monetary policy agency. Especially to slowing global growth and trading partners of the country, what he said could affect the national economy.

"I think we have begun with this euphoria this year, the change of government, the better days to come, that it is almost an economic boom to create hundreds of thousands of jobs that people will do better, all of which led to knowing how to manage the economy, but the economy is more complex than the wishes, and I think the central bank in this debate will record Saturday that expectations are not as optimistic as it was said at the beginning, "he said.


Economist MIT economist Andrés Solimano pointed out that in the latest December report on monetary policy, the economic growth forecast for this year was four percent, while for 2019 this could be on average less than that figure.

He stressed that there are internal risks, especially due to a slight slowdown in the second half of this year, to an increase in unemployment, which would lead to a decline in domestic consumption.

"Economic cycles do not have to be governed by governments despite their intentions and expectations, but hey, that's the situation, we have to study the document, calmly review it, but I think it requires sobriety and be prepared for time in economic matters so much better," he said.

Former World Bank Director Andrés Solimano added that there has been some recovery in the central bank's report.

He confirmed, however, that there are factors that could increase external risks such as the trade war between China and the United States and the result of Brexita, which would lead to capital flows being said to escape from emerging economies like ours. , to a more stable one, as it is, for example, the North American country itself.

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