Once again the political panorama in Colombia is shaken by the proposals of President Gustavo Petro, who recently re-launched an idea that he originally launched when he was campaigning and that put him in the eye of the storm, since for many experts it can be considered absurd and counterproductive for the country’s macroeconomic stability.
The Bank of the Republic is considering printing banknotes, although on this occasion it said that it would be to compensate the victims of the conflict, since in its opinion innovative measures are currently needed that take advantage of all the tools available to the State to guarantee the protection of human rights.
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“The Attorney General’s Office, the Comptroller’s Office and the Ombudsman’s Office say that reparations for victims would cost 334 billion pesos and that the program is delayed. They are right. With $2 billion invested annually in reparations for victims, it would take us 150 years. in repairing them. This is one of the great national hypocrisies”President Petro initially said.
In light of this, he argued that “In Colombia, compensation for victims cannot be achieved without using other instruments of the state, which is responsible for compensation, other than the national budget. To compensate victims in the short term, within their lifetime, it is necessary to issue money by the Bank of the Republic.”
Colombian pesos
The national leader then acknowledged that this proposal had already been made done in the past, “amid ignorant mockery in journalism and the right,” while emphasizing that there are ways to do it, if there is the will and the correct calculations are made, taking into account that there are victims demanding justice.
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Notes at university
In the debates over the inconvenience and adverse effects that some analysts pointed out that printing more bills could have, in addition to President Petro’s idea, a controversy that dates back to 2021 was revived, when he was still campaigning, which is related to his grades at the Externado University, when he was studying the Economics degree that he currently holds.
Both in the morning broadcasts of the media and on social media, this Thursday – August 29 – it was mentioned that Gustavo Petro failed the monetary policy subject, in which he got 2.8 (out of 5.0). However, during the qualification, this report was raised to 3.5 to meet the academic requirements.
Gustavo Petro, at the Colombia Humana assembly.
Human Colombia
This subject is undoubtedly one of the most important in the economics career. It is enough to review the definition of the Bank of the Republic in which it is said that “It comprises the set of measures through which a central bank seeks to meet specific objectives, such as low and stable inflation that preserves the purchasing power of money and contributes to maintaining sustainable economic growth, in a context of financial stability.”to check it out.
Another area in which the President of the Republic was not successful While he was studying economics at the Externado, it was Agricultural Economics, in which he initially failed with 2.2 points, so he had to go to the qualification exam where he finally raised his grade to 3.0.
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It is worth noting that, in response to the proposal to print banknotes, experts such as José Manuel Restrepo, rector of the EIA University and former Minister of Finance, say that “issuance via credit would be by unanimity in the Bank of the Republic according to the Constitution and the Law and is not a good practice because it subordinates monetary policy to fiscal policy, generates a loss of international financial credibility and makes debt more expensive or unviable.”
Likewise, analysts’ warnings focus on the fact that by printing more bills, the country could enter a cycle in which inflation increases and the local currency loses value in the market, situations that would be unfavorable. for the monetary authorities’ current intention to reactivate the economy.
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