The LIBRA Scandal and What (Really) Matters
It started as a local phenomenon and quickly became a global one. Until last week, Milei seemed like the rockstar of global politics, but then came the LIBRA scandal, and his credibility was damaged. What are the implications?
The Infrastructure Puzzle: Balancing Fiscal Discipline and Growth
Argentina is at a crossroads: on one hand, the government is cutting public investment to maintain the fiscal surplus, and on the other, it is betting that productivity gains will offset the appreciation of the real exchange rate. When asked about investment, Government officials repeat almost dogmatically: Let the private sector handle it! But… does […]
Cepo: Time to Start Thinking About D-Day
One year into Milei´s economic plan, the results have been successful. Inflation has dropped rapidly, the exchange rate spread remains contained, credit is growing, real wages are recovering, and economic activity is picking up. Meanwhile, the Central Bank has purchased over USD 23 billion, though reserves have not increased due to debt payments.
A Temporary Relief for Agriculture
The government surprised everyone by announcing a temporary reduction in export taxes for the agricultural sector and their elimination for regional economies, leveraging the excellent fiscal results achieved in 2024. The measure comes ahead of a scheduled meeting between Caputo and the agricultural sector representatives, where producers were expected to demand lower export taxes. The […]
An Oxymoron: Currency Competition with FX Controls
Argentinians have a tendency to think in dollars, a result of the inflation that has tormented us for so many years. It feels almost natural to convert prices into dollars when dining at a restaurant or buying a t-shirt to assess whether it is expensive or not. There is no doubt that we also consider […]
Country Risk Fell Sharply, but There Is Still Ground to Cover
One of the economic program’s great victories has been the phenomenal reduction in country risk. It fell from around 2,000 when Milei took office to 580 basis points last week. This improvement has not been accompanied in the same dimension by improvements in credit ratings, which remain at CCC for the three major agencies, but […]
In a Year of Consolidation, Lifting FX Controls Can Wait
The year begins with lots of hope and some challenges. 2024 left important achievements, such as the impressive improvement in fiscal accounts, or the decrease in inflation and the exchange rate spread. At the same time, the economy is beginning to show a path of recovery, and after an initial deterioration, real wages and poverty […]
The Best and Worst of 2024
2024 is coming to an end and at Econviews we wanted to finish by summarizing the best and worst of the year. It was undoubtedly a year that we will remember and with the pass of time we will be able to put it in historical context. For now, this list is a contribution so […]
The Keys to Move From Stabilization to Growth
In his speech to evaluate his first year in office, Milei showed satisfaction with the achievements obtained, and it was made in a calmer tone than we are used to, which is comforting. It was clear that 2024 was the year of stabilization and of surfing the crisis left by the previous government, and 2025 […]
A Year of the “Plan Peluca”
A year ago, Argentina was gripped by uncertainty and fears of a massive crisis. Milei’s first goal was to avoid the country falling in a major disaster, but there were widespread concerns. His government lacked executive experience, held a marked minority in Congress, had no governors or mayors from his party, and faced a fragile […]