Argentina Heading for ‘Shock’ Fiscal Therapy

“President-elect Javier Milei promised economic shock therapy to balance Argentina’s budget next year in an effort to avoid hyperinflation,” Bloomberg reports.

“Fresh off his landslide election win, Milei said Tuesday evening he will drastically cut government spending because ‘there’s no money.’ Failure to do so would further boost consumer prices that are already soaring more than 140% a year, their fastest pace since the South American nation was exiting its last bout of hyperinflation in the early 1990s.”

Said Milei: “If we don’t do the fiscal adjustment, we’re going to hyperinflation. I’m going to do a shock adjustment.”