Argentina’s Political Economy and the Milei Administration
President Javier Milei was elected as President of Argentina last December with 53% of the popular vote. He inherited one of the worst economic situations ever, one that was undoubtedly heading towards hyperstagflation and economic collapse. In his political campaign, Milei proposed a radical libertarian plan to attempt a 180-degree turn in Argentina’s socio-economic organization which he had characterized as beset by rent-seeking and corruption. He presented to Congress a package of laws including an across-the-board elimination of all types of regulations to transform Argentina into a modern capitalist economy. However, he still has governed with a minority in both chambers of government and many of the proposed reforms have been blocked.
This presentation will discuss: (a) the characteristics of Milei’s economic and reform plans; (b) his initial success in achieving drastic disinflation in a dismal macroeconomic situation using a rapid budget equilibrium as an anchor; (c) if, from an economic perspective, his plan will be sustainable over the months to come; (d) if, from a political economy perspective, he can retain his resilient popularity which is still the basis for this harsh program; (e) whether Argentina can regain access to international capital markets, an indispensable ingredient to help finance the ambitious reform plan and relaunch the economy.
With
Gerardo della Paolera - Professor of Economics, Torcuato di Tella University/Executive Director, Fundacion Bunge y Born
Comments by
Fernando Cirelli - Assistant Professor of Economics, Columbia University
Chair - Alan M. Taylor - Professor of International and Public Affairs, Columbia University
