Part 3/10:
During his campaign, Milei promised significant shocks to the status quo, including dollarization of the economy and disbanding the Central Bank of Argentina. His platform was driven by a desire to tackle Argentina’s persistent inflation, growing debt, and economic instability. However, the rapid pace at which his policies have been rolled out reveals a complex and chaotic transition from campaign rhetoric to governance.
Initial Measures: Shock Therapy in Action
Within days of taking office, Milei announced a series of aggressive reforms:
- Currency Devaluation: The peso was devalued by approximately 54%, a move seen as a desperate attempt to stabilize or revive the economy. This led to a sharp increase in inflation, with prices soaring by as much as 100% in just a few days.