disinflation

The puzzle that keeps repeating Argentina has tried to stabilize its economy before. It has done so under military governments and democratic ones, under heterodox programs and orthodox ones, under economists who believed in markets and politicians who did not. Each episode produced a period of relative calm. Each period eventually ended the same way. […]

  Javier Lanari, Milei’s Media Sub-Secretary, claimed that Argentina’s annual inflation dropped from 17.0% to 8% in record time. This statement has been heavily promoted by Milei’s administration, likely for political reasons—face-value numbers are easy to market as a success. However, I question the use of these figures, as well as Lanari’s enthusiastic yet premature assertion that […]

  With dollarization discarded in the short run, the world is eagerly watching Milei’s initial steps as the new president of Argentina. Milei took office in December with a yearly inflation rate of 211 percent (yes, you read that right). Despite the lack of robust monetary reform, Milei’s government managed to reduce the inflation rate […]