Argentina

Katarina Hall | 12.15.2023 2:30 PM

When Javier Milei assumed the presidency of Argentina on Sunday, he promised to shock the country's economy to end its economic crisis. In his first acts as president, the self-described anarcho-capitalist devalued the peso, halved government ministries, and announced a series of spending cuts.

On Tuesday, Milei's new administration announced a sharp currency devaluation, weakening the peso by more than 50 percent. As a result, the official exchange rate increased from 366.5 per dollar to over 800.

After years of previous administrations forcefully slowing the peso's decline, the central bank also set a monthly devaluation target of 2 percent in an attempt to anchor inflation.

"We're always worse off because our response has been to attack the consequences but not the problem," Economy Minister Luis Caputo........

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