FT: Milei's Disinflation Fails to Spur Growth; Employment, Wages, Consumption Lag
Published 1 d ago5 sourcesEvidence: Reported
Argentine President Javier Milei has publicly rejected any proposal to issue more pesos to stimulate economic activity, arguing it would accelerate inflation. This reaffirms his commitment to fiscal and monetary discipline, signaling continuity in his anti-inflationary policy stance. The statement may temper market expectations of near-term stimulus, reinforcing confidence in the government's orthodox approach.
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Argentina's fiscal consolidation under President Milei has reduced inflation and improved central bank reserves, but economic growth remains stagnant, with declines in employment, real wages, and consumption. Milei has acknowledged slower-than-expected disinflation and growth indicators, while reaffirming commitment to fiscal and monetary discipline. The divergence between macroeconomic stabilization and microeconomic vitality raises questions about the political sustainability of current policies.
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