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What can we learn from Argentina’s new economic regime?

Author

Listed:
  • Juhana Hukkinen

    (Monetary Policy and Research Department of Bank of Finland)

  • Matti Viren

    (Monetary Policy and Research Department of Bank of Finland & Economics Department of University of Turku)

Abstract

Recent economic developments in Argentina give rise to several interesting observations about the workings and effects of economic policies. Of particular interest, of course, are the dramatic changes in inflation as a consequence of the economic policies of the newly elected President Javier Milei. Here, we briefly describe these policies and try to assess how much they contributed to this outcome. As a reference, we use indicators of monetary policy, which are conventionally considered to be of decisive importance in combating inflation. Although we cannot provide a formal test for the importance of different policies, it seems that policies which restored fiscal soundness were the decisive factor.

Suggested Citation

  • Juhana Hukkinen & Matti Viren, 2025. "What can we learn from Argentina’s new economic regime?," Discussion Papers 169, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp169
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    References listed on IDEAS

    as
    1. Alberto Alesina & Carlo Favero & Francesco Giavazzi, 2019. "Effects of Austerity: Expenditure- and Tax-Based Approaches," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 141-162, Spring.
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    More about this item

    Keywords

    inflation; interest rates; government finance; fiscal theory of price level;
    All these keywords.

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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