Argentina

  There’s been an ongoing debate in Argentina about the federal budget results under the Milei administration. I want to be very clear: the numbers show significant improvement, and Milei’s administration has been successful in putting the “deficit issue” on center stage. Yet, there are also good reasons why some Argentine economists point to potential problems and […]

A “historical” agreement that reveals economic desperation The United States’ intervention to support Argentina’s peso has been described as “historical”—and it is. But this historical nature tells us as much about the strength of the bilateral relationship as it does about the depth of Argentina’s crisis. Argentina has effectively moved its lender-of-last-resort function even further […]

  Since taking office as Argentina’s president in December 2023, Javier Milei has done something remarkable. He has reduced the annual inflation from 211 percent to 33.5 percent and balanced the budget for the first time in over a decade. His unexpectedly strong victory in Sunday’s midterm elections appears to validate his approach domestically, with US Treasury Secretary Scott Bessent’s announcement […]

  Argentina’s congressional elections in October brought victory for President Javier Milei and a broad confirmation of his policies. President Milei has introduced reforms in Argentina that were long overdue – the kind that are overdue in the United States and Europe as well. Expedient politics that buy votes through excessive clientelism, combined with an oversized, overcontrolling state, […]

  A few weeks ago, Argentina slid into another currency crisis. In what appeared to be a desperate move, the Argentine government reached out to the U.S. Treasury, seeking assistance from its Exchange Stabilization Fund (ESF)—the same fund famously used to help Mexico during the Tequila Crisis in the mid-1990s. Argentina hasn’t received a single […]