Javier Milei's Argentina: Two Years In

Analysis of President Javier Milei’s Economic Reforms in ArgentinaExecutive SummaryThe presidency of Javier Milei represents a radical departure from decades of economic stagnation and interventionism in Argentina. Since taking office in December 2023, the administration has shifted the nation toward a libertarian framework characterized by aggressive fiscal discipline, systemic deregulation, and a transition toward free-market enterprise.Critical Takeaways:• Fiscal Transformation: Within one month of taking office, the administration achieved a balanced budget—a feat previously considered impossible under democratic rule—by drastically reducing public spending rather than raising taxes.• Inflation Reduction: Monthly inflation has been reduced from a peak of 25% in December 2023 to approximately 2%–2.5%, though it remains a significant challenge.• Aggressive Deregulation: Key sectors, including the rental market and satellite internet, have seen immediate improvements following the removal of restrictive laws. The elimination of rent control resulted in a 200% increase in housing supply and a 30% reduction in real prices.• Political Realignment: Despite starting with a minimal congressional presence (10–15%), the administration's performance led to a sweep in the October 2025 midterms, granting Milei control over approximately 40% of the House and one-third of the Senate.• Future Strategic Goals: The administration is pivoting toward "second and third generation" reforms, prioritizing labor market flexibility, the privatization of state-owned entities, and potential dollarization to permanently eliminate inflation.