Milei's economics: The first year and the challenges ahead

9 Pages Posted: 13 Dec 2024

See all articles by Sebastian Galiani

Sebastian Galiani

University of Maryland - Department of Economics

Santiago Afonso

University of Buenos Aires (UBA) - Faculty of Economic Science, Students

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

Galiani, Sebastian and Afonso, Santiago, Milei's economics: The first year and the challenges ahead
(November 12, 2024). Available at SSRN: https://ssrn.com/abstract=5038638 or http://dx.doi.org/10.2139/ssrn.5038638

Sebastian Galiani (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Santiago Afonso

University of Buenos Aires (UBA) - Faculty of Economic Science, Students ( email )

Argentina

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