A Key Pending Challenge for Milei’s Argentina
After making strong fiscal progress, Argentina’s government still confronts a fragile exchange rate regime as it seeks a new IMF program.
Javier Milei campaigned on two key promises: To bring the country’s high and accelerating inflation to a halt by dollarizing the economy and closing down the Argentine central bank (BCRA), and to balance the budget by taking a chainsaw to wasteful government spending. Now, 15 months into his term in office, he has made heroic progress on the fiscal and inflation fronts. But by forsaking dollarization and keeping currency and capital controls in place, Milei has jeopardized his anti-inflationary program and discouraged a potential investment boom. In the three weeks between Milei’s...
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