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Argentina: Javier Milei's Reform Agenda from a Theoretical and Empirical Perspective

  • Marius Kleinheyer EMAIL logo and Gunther Schnabl
Published/Copyright: September 16, 2025
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ORDO
From the journal ORDO

Abstract

Argentina has been characterised for a long time by inflation, recession, poverty and failed reforms. We analyse the reforms of Javier Milei with the help of the Austrian School of Economics, German ordoliberalism and the theory of financial repression. It is shown that Milei’s reforms have achieved with expenditure cuts and decisive deregulation an impressing consolidation of the public budget, a decline of inflation as well as – with a lag – growth and a falling poverty rate. His reforms may become a blueprint for other countries such as Germany.

Zusammenfassung

Argentinien ist seit langem durch Inflation, Rezession, Armut und gescheiterte Reformen gekennzeichnet. Wir analysieren die Reformen von Javier Milei mit Hilfe der Österreichischen Schule der Nationalökonomie, des deutschen Ordoliberalismus und der Theorie der finanziellen Repression. Es wird gezeigt, dass Mileis Reformen mit Hilfe von Ausgabenkürzungen und Deregulierung eine beeindruckende Konsolidierung des öffentlichen Haushalts, einen Rückgang der Inflation sowie – mit Verzögerung – Wachstum und einen Rückgang der Armutsquote erreicht haben. Seine Reformen könnten zu einer Blaupause für andere Länder wie Deutschland werden.

JEL-Codes: B53; E58; P11

Acknowledgment

We thank Tom Bugdalle for excellent research assistance and Thomas Mayer for excellent comments.

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Published Online: 2025-09-16

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