Milei Considers Shock Therapy to Curb Inflation as President-Elect Builds Economic Team
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Former central bank governor Luis Caputo met with banks as potential economy minister for President-elect Javier Milei. He laid out plans for "shock therapy" to fix the economy.
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Caputo emphasized the need for immediate fiscal and monetary adjustment to curb high inflation, lift capital controls, and rebuild reserves. The approach would be "orthodox" not "crazy."
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Signs Milei leaning towards a more orthodox economic team boosted markets, with bonds up 14% and equities over 40% since his election.
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Caputo said no plans for immediate dollarization of the economy, as fiscal and monetary stabilization are needed first. Shutting the central bank is "non-negotiable" for Milei though.
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Taming inflation forcefully is a top priority, but Caputo did not provide details on how Milei's government would specifically achieve this.