### Summary
🇦🇷 Argentina's right-wing populist presidential candidate Javier Milei assured the International Monetary Fund (IMF) that the country would not default on its debts if he is elected.
### Facts
- 🗳️ Milei, who gained popularity by criticizing the political establishment, became the surprise frontrunner in Argentina's national primaries.
- 💰 Argentina currently has a $44bn loan program with the IMF and Milei assured officials that the country would continue to make payments and not default on its debts.
- 🗣️ During a virtual meeting with IMF officials, Milei outlined his economic proposals, which include fiscal adjustments, opening up the economy, labor law reform, spending cuts, and ending the Central Bank.
- 🇨🇱 The peso devalued and consumer prices surged after Milei's victory, causing market uncertainty.
- 🤝 The IMF also met with Patricia Bullrich, the main opposition coalition's presidential candidate, as part of routine engagements with political and economic stakeholders.
- 🗳️ Milei and Bullrich will compete against Minister of Economy Sergio Massa in the October elections, where a candidate needs to secure at least 45 percent of the votes to win outright.
### Summary
Raghuram Rajan explains why the public's trust in economic policymakers has been lost, leading to the popularity of previously discredited economic policies.
### Facts
- 📜 Policymakers find it difficult to explain complex issues to the public, especially when they have the public's trust.
- 🗺️ Before the global financial crisis, there was a broad consensus on economic policy direction, with a liberal orthodoxy prevailing.
- 🚫 Studies demonstrating adverse effects of trade liberalization were met with skepticism, while theoretical papers were more acceptable.
- 🌍 The global financial crisis shattered the prevailing consensus and the public's trust, leading to the emergence of unorthodox populist policies.
- 🗳️ Populist policies gain appeal because they seem obviously true and are easy to communicate, even if they might be unsound or unsuccessful in the past.
- 💼 Rich industrialized countries have embraced these populist policies, leading to a swing from excessive faith in the liberal orthodoxy.
- 🌐 Emerging markets and developing countries have experienced such cycles before and some have become proponents of orthodox liberal macroeconomic policies.
- 🇮🇳 India has recently started requiring licenses to import computers to support domestic production and reduce dependence on Chinese imports, neglecting the negative consequences for IT service exports.
- 🇦🇷 Argentina is shifting its affections from left-wing Peronists to a right-wing libertarian who promises to cure inflation by adopting the US dollar.
- 😞 Pessimism prevails as the pendulum swings between excessive faith in orthodoxy and popularity of populist policies.
Argentinian libertarian candidate Javier Milei, who is a bitcoin advocate and calls for the abolition of the central bank, won the Argentinean primary election, raising broader questions about the global experience for cryptocurrency holders in inflation-prone countries.
María Barro, a domestic worker in Buenos Aires, supports the idea of dollarizing Argentina's economy as a hedge against inflation and the devaluation of the local peso, but is undecided about voting for libertarian candidate Javier Milei due to his aggressive style; Milei's dollarization plan has sharply divided opinion, with supporters arguing it is a solution to inflation while detractors say it would sacrifice the country's ability to set interest rates and control money circulation.
Argentine presidential candidate Javier Milei, known for his radical and aggressive style, has gained momentum in the country's political landscape with his promises to tackle economic volatility, inflation, and decline, as well as his pledge to dollarize the economy. He is seen as the front-runner in the upcoming October election, although his aggressive style has both appealed to and put off voters.
Argentina's center-right presidential candidate, Patricia Bullrich, would not seek new loans from the IMF if she wins the upcoming general election, but instead aims to manage the country's existing debt with the global lender, according to a top advisor; this comes as Argentina's economy continues to struggle with high inflation and a deteriorating local currency.
Javier Milei, the "anarcho-capitalist" presidential candidate in Argentina, gained popularity by promising to dollarize the economy and provide a solution to the country's economic crisis. However, economists and the IMF have raised concerns about the feasibility of dollarization as a solution.
Argentina is facing a presidential election amid an economic crisis marked by soaring inflation, recession, and a high poverty rate, with leading candidates divided over how to address these issues, including a suggestion to dollarize the economy.
Argentina's upcoming presidential election will require the next government to cut spending, stop printing money, and address the country's high inflation and economic challenges, according to executives and members of the business community.
Despite Javier Milei leading the polls and proposing dollarisation, Argentina's economic problems are deeply rooted in political issues and require more than just a quick fix.
Argentina is facing a severe economic crisis with high inflation, dwindling foreign reserves, capital controls, and a looming recession, as voters prepare to choose between three presidential candidates in the upcoming election.
Argentina's leading candidate, Javier Milei, is advocating for dollarization and the abolition of the central bank in an effort to address the country's economic crisis, which includes high inflation, a weak currency, and mounting debt. The outcome of the election remains uncertain, and the next government will face significant challenges in managing inflation and FX reserves.
Argentina prepares to vote in presidential elections with libertarian Javier Milei in the lead, reflecting voters' anger at inflation, rising poverty, and a sliding peso currency, as Milei pledges radical economic measures such as privatization and dollarization, though a second-round run-off is expected.
Surprising first-place win for Argentina's ruling Peronists in the recent general election eases market concerns of a radical policy shift and potential dollarization of the economy.
Voters in Argentina participate in a general election amid an economic crisis, with candidates offering different approaches to revive the country's struggling economy.
