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Obviously, I don’t need to tell the reader that Mario Centeno presented the Bank of Portugal economic bulletin last week. If you’re anything like me, you probably didn’t sleep the night before. I am always in a state of excitement. I look like a child waiting for Santa Claus, if Santa Claus is a boring bureaucrat who comes to explain, with intricate drawings, why no one will receive gifts this year.
This time, Mario Centeno took up the topic of inflation. Thankfully, he did not stop the approach, but also left valuable advice on how to deal with the general increase in the cost of living. Highlight parts of the news with Centeno’s tips. For those unfamiliar with academic jargon, I add translation into the language of people who pay bills even at the grocery store and not on an economic model.
But there is in this indicator [inflação] A certain “structural effect”, associated with the transfer of energy. In this context, Centeno risks a recipe: “Adapting, even if temporarily, our consumption and our decisions with this precious signal that economies give us price.”
Adapt consumption to price. for first scond, “Adapting consumption to priceIt sounds like ‘don’t live beyond your means.’ But no. Mario Centeno isn’t saying not to live beyond our means, he’s just saying not to buy products we don’t have money for. Totally different.
price tag. More precisely, a STOP signal. The “structural effect“It means the price will not go down anymore.
How do? The evidence came directly from the initial intervention, when Centeno thought about the reasons for the increase in inflation: to take advantage of this time to adapt behaviors that contribute to the transfer of energy – which “It also has a role in the value of the inflation we observe today“.
“Part of these monuments [na inflação] It’s the structural effects of climate change that have an impact on our lives, but it’s a goal we must all commit to. This shift also plays a role in the value of the inflation we observe today. It is also temporary, albeit longer, and we have to reflect it in our consumption and production decisions if we are to be consistent with the goals we have set.“
Here it is: adapting behaviors. When it is cold, a person acts towards turning on the heating. You have to adapt this behavior and stop doing it. At first, it costs a little. Instinctively, we reach for the thermostat. But the price is a sign. More precisely, stop! Do not touch this key! After a few days, we lost the habit. Even if it’s so cold that we don’t feel like getting our hands out of our pockets. But, Centeno remembers, we have to reflect price increases in our decisions about consumption and production, if we are to be consistent with the goals we have set. In other words: They want to decarbonize, right? So pay up, the power transmission is expensive.
Does this mean that for Centeno we have to reduce consumption? Or direct it towards more sustainable standards? To the journalists’ question, the governor did not respond directly. He already asked if he wanted to leave some.”Warning“As for the price hike, the economist also tried to better explain the meaning of the words.
Centeno says that prices “SignalThat the Portuguese should take into account when consuming them. “We must always be very attentive to what prices indicate to us in making our decisions. It was in this context that the words were spoken. Climate change – which has a very large support package in the PRR (Recovery and Resilience Plans) for European countries – is a structural shift in our behaviour, in the way we produce and consume, and how we generate energy for all of these activities, from our trips to work, to the way we operate air conditioners and factories. It is inevitable that we are aware of this indication that prices give us.“
Imagine that we are in a mime game and prices give clues. We will never be able to find out what prices you are trying to tell us. We are really candid. Prices for reference we do not understand. More: The power transmission is expensive. He used to.
Soon, he said we should be”Willing to adapt, albeit temporarily, to our consumption and decisions“For the price, so”Any intervention in the mechanisms of price formation can have an impact on the way economic transformation occurs“.Centeno even left a warning to the government, albeit an indirect one: If on one hand we have to”Finding temporary accommodation mechanisms“From these inflationary phenomena, on the other hand”would be wrong” You want “hide“This pressure with”Measures that could impede this transition [climática]”.
Seriously, man. If it is too expensive, don’t consume it. And it’s not worth the stupidity of tax cuts. Did I already say that energy transmission is expensive or not? Pay. Or go for a walk.
Centeno repeats that he is defending”temporary measures“for”temporary shocks“.”Climate change has significant energy costs and the answer we have prepared for this lies in PRR (…). It cannot be fiscal or budgetary policies on the spending side that provide this structural response.“.
In short: prices go up, taxes don’t go down. But this is for the good of the planet, so don’t complain.
And that it was. I bet over half the time preparing this newsletter was spent by BdP choosing the right day to present it. Analysts refined the calculations and concluded that it was the Fourth of May: it was no longer cold enough to turn on the heating and still not hot enough to turn on the air conditioner. Undoubtedly, it is the perfect time to say that energy is going to get more and more expensive and there is nothing we can do to avoid that. Perfect for that week of the year when people live well at room temperature in Portugal.
But, Centeno says, there’s nothing that can be done. “We must be consistent with the goals we setThe goal is to decarbonize. So, it is time to explain to cold-stricken people that they must adapt their consumption so that, in the year 2100, their grandchildren will have a shoreline 30 cm back. This is reasonable. In the same way it would have been reasonable to claim that A Portuguese man in his forties sacrifices his luxury so that today we have 0.2°C lower in the average temperature. We would be much better off. What did it cost you to live a life a little worse? I was already poor! I’m sure I wouldn’t notice the difference even if I adapted Consumption.
Finally, the politician seems to acknowledge that the energy transition is expensive and that we are paying for it. For a long time, there was an illusion that decarbonization was not only cheap, but that it would lower your electric bill as well. It happens, until the problem of cutting off renewable energy sources and battery storage is solved, we will always need to maintain to support based on fossil fuels. This is expensive.
Portugal prides itself on the renewable energy it produces, but that is little consolation. We are like a stallion who brags for no reason.
Our sex life is amazing.
– yes. Just yesterday I had an erection for 7 hours.
– hero! And your wife did that?
– You weren’t at home. I got an erection when I was alone. When I arrived, I no longer had the strength.
How is your sex life great?
– From time to time I have a very strong desire when there is no possibility to spend it. Then, when my wife wants it, I can’t. Since this happens a lot, I’ve got a file to support. He is Mozambican and his name is Semedo. If I do not have the ability, Semedo is always ready to save me.
Mario Centeno just introduced us to Semedo.