But to gauge whether rates are sufficiently restrictive, we need to know how much traction our policy tightening is having – and is likely to have – on spending in the economy. That is why policy transmission is the third element we are looking at.
As I have already told you on previous occasions, we must take into consideration the experience of Argentina’s neighbors that reported high inflation rates for decades. They put their fiscal accounts in order, adopted consistent monetary policies and managed to control inflation. I was saying that our monetary policy has to be tight. This is absolutely necessary for various reasons.