The 2011 Monetary Program shows a growth goal in the amount of money of up to 31.9%, justified by the "robust increase of the economy" during this year, estimated at between 3.5% and 6.5%.This issuance projection includes a strong credit expansion which together with the policy of reserve accumulations and transfer of profits from the Central Bank to the National Treasure parts the waters between economists as regards the effect this can have on prices.
The indicator used to measure the amount of money, M2 (money held by the general public and deposits in private and public banks) would increase on a floor of 27.9% with the possibility of fluctuating within a range of about four points.
Unlike countries such as Brazil which takes into consideration an inflation goal, Argentina sets a range in the amount of money which implicitly carries the idea of controlling the rate of exchange within a given range, known as "policy of managed flotation".
Under the leadership of Mercedes Marco del Pont, for the first time, objectives related to development are included for the first time in the plan. They go beyond the goals in previous plans such as the stabilization of the currency and the regulation of the financial system: the deepening of productive loans, the regulation of short term capital flows and the universalization of the financial services which are included in what the Central Bank called the "7 action lines"
Source: Télam
