The currency was devalued to bring the official rate in line with the black market rate. So anything imported is going to have a big jump in price. But also making Argentine products more attractive abroad. Inevitable, if Argentina is going to solve its economic problems.
It was ore complicated, because to import things there were a lot of rules and paperwork to get an authorization, so many things were already using the black market dollar. So some items will have a big jump and others a medium jump. (And a few a small jump.)
That’s the result of decades of voting for corrupt Peronist clowns that grossly inflate the Peso and try to control citizens with little handouts from what they’ve been robbed of.
Will hurt in the short term, but Millei has brought back economic normalcy that’ll likely have positive long-term results.
Seems like counting your chickens before they hatched. He’s been in for days and he’s trying to replace a hyper-inflationary system. A few eggs will be cracked.
Not claiming this exact approach will go well in the long run, but if things are to be fixed politicians are going to need WIDE latitude. The Argentinian economy is so horribly distorted that any attempt to fix it will cause shocking effects.
Don't worry we're going to have a completely free market now and surely the prices will go down once people stop buying fuel, diapers or milk for a few days... right?
I also want to bring attention to the fact that we have a rampant inflation; the Peso has been devaluated by the goverment by 50%, and the budget for science for 2024 has been set to... exactly the same as 2023 (and it was already low). This means science and education in Argentina is going to be severely affected. [1] (article is pre-devaluation but still relevant).
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[ 3.8 ms ] story [ 33.9 ms ] threadWill hurt in the short term, but Millei has brought back economic normalcy that’ll likely have positive long-term results.
Not claiming this exact approach will go well in the long run, but if things are to be fixed politicians are going to need WIDE latitude. The Argentinian economy is so horribly distorted that any attempt to fix it will cause shocking effects.
I also want to bring attention to the fact that we have a rampant inflation; the Peso has been devaluated by the goverment by 50%, and the budget for science for 2024 has been set to... exactly the same as 2023 (and it was already low). This means science and education in Argentina is going to be severely affected. [1] (article is pre-devaluation but still relevant).
[1] https://www.science.org/content/article/argentina-s-new-pres...
I have no genuine idea how he's doing as a leader but I'd look in other places to find out.