The economic crisis in Argentina and the experience of extreme liberalism with Javier Milei

The economic crisis in Argentina and the experience of extreme liberalism with Javier Milei

Argentina is experiencing difficult times under President Javier Millet, who came to power on a populist campaign hostile to the traditional political elite, promising a "chainsaw" to cut government spending and fix the collapsing economy. An economic analysis of his policies reveals that he is conducting a radical experiment in economic liberalism, relying on abolishing ministries, reducing social spending, and even considering abandoning the local currency, the peso, in favor of the US dollar. Argentina is suffering from inflation exceeding 200%, one of the highest rates in the world. The gap between the official and parallel market exchange rates is enormous, encouraging speculation and currency smuggling. Millet believes the solution lies in eliminating the central bank and rejecting government intervention in the economy, relying on the theory of "fiscal restraint" to restore investor confidence. However, these policies come at a heavy social cost. Poverty figu…