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Economic policy under Fernández to resemble first Kirchner term

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Economic policy under Fernández to resemble first Kirchner term

With a likely victory by opposition front-runner Alberto Fernández in the Argentine presidential elections, economic policy would look much like the first of the three Kirchner governments in Argentina, Guillermo Nielsen, a close economic aide to the Peronist candidate, said in an interview with Valor Econômico.

"It is necessary to refer to the Argentina of 2003, 2005 and 2006. This is where we will find the type of economic policy that we want to put forward," said Nielsen, a former finance secretary under Néstor Kirchner. This means "much lower" levels of inflation, a "competitive" exchange rate, real interest rates of between 1% and 2% and a "tighter" grip on public spending, according to Nielsen.

Nielsen, who oversaw debt restructuring after Argentina's 2002 debt default, is a probable financial minister candidate under a potential Fernández presidency. He has been the economic spokesman for the Peronist candidate since Fernández won the Aug. 11 primary elections.

The economist reportedly proposed a broad price and salary cap agreement in order to temper inflation, which is set to end 2019 at about 50%. Nielsen also said "absolute freedom" in capital markets will no longer be the rule. "There will be some limitations, but very reasonable ones."