The Economics Show Has Argentina’s Milei proved his critics wrong? With Alejandro Werner
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Jul 28, 2025 Alejandro Werner, former head of the IMF’s western hemisphere department and founding director of the Georgetown Americas Institute, shares insights into Argentina's economic revival under President Javier Milei. They discuss the radical free-market policies that aim to stabilize a nation long plagued by debt defaults and high inflation. Werner highlights the surprising public backing for austerity measures and delves into the challenges of gaining investor trust and successfully transitioning to a dollarized economy.
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Argentina's Economic Decline Roots
- Argentina's economic decline is a long-term issue rooted in protectionism and unsustainable welfare policies.
- Half a century of economic mismanagement led to multiple crises, debt defaults, and high inflation.
Rapid Fiscal Turnaround
- Milei balanced Argentina's budget quickly by cutting government spending drastically.
- He went from a 5% deficit to surplus within a quarter, surprising many observers.
Dollarization Dream vs Reality
- Milei promised dollarization but realized Argentina lacked the necessary dollar reserves.
- Instead, he massively devalued the peso and set a controlled depreciation rate.
