Milei's economics: The first year and the challenges ahead
9 Pages Posted: 13 Dec 2024
Date Written: November 12, 2024
Abstract
President Javier Milei's first year in office rightly prioritized two fundamental issues: chronic fiscal deficits and economic regulations driven by rent-seeking groups. While achieving the most aggressive fiscal consolidations on record, the administration has heavily relied on inflation-driven cuts to social spending and public investment rather than on structural reforms. Despite a significant deregulation effort, limited congressional support has hindered more comprehensive reforms. Although President Milei remains strongly committed to the program implemented, the sustainability of these measures remains uncertain. As the administration approaches the 2025 midterm elections, its ability to maintain public support while managing potential currency pressures will be crucial for implementing deeper structural changes and avoiding the fate of previous reform attempts.
Suggested Citation: Suggested Citation
(November 12, 2024). Available at SSRN: https://ssrn.com/abstract=5038638 or http://dx.doi.org/10.2139/ssrn.5038638