INDEC reveals Argentina's 2024 inflation rate: 117.8%

[daveholman]

Milei for sure doesn't deserve the blame, of course not. But also not praise, except for few good things he did. Right now I'm surrounded by the news how Milei lowered inflation comparing to 2023, but this at least should come with some asterisk, since he also greatly contributed to 211% in 2023.

And this 100 years is bullshit, Argentina did quite good for many of those 100 years comparing to the world, although not as great as some other nations. But this is not solely their fault, it's relatively small economy, away from any transport routes, surrounded by not so great economies. It could and should do better, and maybe milei succeeds, but this remains to be seen. For now, nothing much happened really.

Argentina is, in essence the only First World country from the 1920's that has never fully recovered from the Great Depression. Back then their economy was equal to the rest of South America, combined.

And how, pray tell, did Milei contribute to the inflation in 2023? He took office 3 weeks before the end of the year. Are you saying some significant portion of the 200% happened during that 3 weeks? Or is it more honest to say roughly half of the 2024 inflation is due to policies enacted before he took office? Even small economies don't turn on a dime. There is always a lag of several months before enacted policies start affecting the real economy.

 

[mikic007]

I guess you didn't see the Economist cover story a few years back on 100 years of decline in Argentina.

No, I read it now and I'm not impressed.

 

[mikic007]

Argentina is, in essence the only First World country from the 1920's that has never fully recovered from the Great Depression. Back then their economy was equal to the rest of South America, combined.

And how, pray tell, did Milei contribute to the inflation in 2023? He took office 3 weeks before the end of the year. Are you saying some significant portion of the 200% happened during that 3 weeks? Or is it more honest to say roughly half of the 2024 inflation is due to policies enacted before he took office? Even small economies don't turn on a dime. There is always a lag of several months before enacted policies start affecting the real economy.

Economies don't turn on dime for the better, but they can easily turn on the dime for the worse. Which is exactly what happened by devaluation of peso in mid December 2023, when Milei added around 30% inflation to the existing. I don't say this was necessarily bad, but the fact is, that he didn't do some magic, he didn't heal anything (yet). He just stopped inflation, which isn't terribly hard thing to do, to be honest, we know how to do that for thousands of years. Every country had been affected at some point, and each came out of it.

We have yet to see, how Milei will fare at serious tasks, like opening the market for goods and money. I'm waiting, and will clap for sure if he succeeds, at least a bit...

 

[redlobster]

And how, pray tell, did Milei contribute to the inflation in 2023? He took office 3 weeks before the end of the year.

Milei won the PASO elections in August, which completely changed the political landscape. Nearly everything that has happened with inflation since then is the 'Milei effect.'

Suddenly, it became clear that a guy who promises to completely get rid of the peso and destroy the Central Bank, leaving no stone on stone,is a favorite in the Presidential elections. As a result, everyone started spending pesos like crazy.

Yes, he stopped inflation eventually, but in the worst possible way. He didn’t stop it while keeping prices low or even reasonable. Inflation stopped only after prices went through the roof. It's like curing a headache with a guillotine.

It’s hard to believe that any foreign investors will come here and build production plants with these prices. There are plenty of business-friendly countries that are much cheaper.

 

[daveholman]

Milei won the PASO elections in August, which completely changed the political landscape. Nearly everything that has happened with inflation since then is the 'Milei effect.'

Suddenly, it became clear that a guy who promises to completely get rid of the peso and destroy the Central Bank, leaving no stone on stone,is a favorite in the Presidential elections. As a result, everyone started spending pesos like crazy.

Yes, he stopped inflation eventually, but in the worst possible way. He didn’t stop it while keeping prices low or even reasonable. Inflation stopped only after prices went through the roof. It's like curing a headache with a guillotine.

It’s hard to believe that any foreign investors will come here and build production plants with these prices. There are plenty of business-friendly countries that are much cheaper.

And yet, in the last couple months about a dozen international corporations have announces $100million plus investments in Argentine projects, and 5 large banks have expressed an interest in facilitating more investment.

BTW - LLA pulled about 17% in the PASOs. A distant 3rd place finish. NO ONE thought they would win the general.

Have you ever stopped to just look at a bunch of facts, and let them change your mind? Or is that too hard?

 

[redlobster]

BTW - LLA pulled about 17% in the PASOs. A distant 3rd place finish. NO ONE thought they would win the general.

Stop lying.

Elecciones 2023 | Javier Milei ganó las PASO y provocó un terremoto en la política argentina

Superó por 2 puntos a la suma de los candidatos de JxC; Bullrich derrotó a Larreta y Massa perforó el piso histórico del peronismo; “somos la única oposición”, dijo el candidato libertario

www.lanacion.com.ar

Nadie lo vio venir. La Libertad Avanza, el partido fundado por Milei, sacó 30,1% de los votos, ganó en 16 provincias y se impuso tanto en barrios populares como en los pueblos prósperos de la Argentina productiva.