Why is inflation going down in Argentina? Because it went up massively late last year. Why might inflation rise again in Argentina? Because it has been falling in recent months.
There's a recent research about it and economists find it interesting to couple with some historical data.
In inflation–adjusted terms, today the Argentine peso is more overvalued than it was in August 2023, when the Fernández administration was compelled to allow a one–time devaluation. This effect can be seen clearly in the shopping malls of neighboring Chile, mobbed with Argentine tourists who stock up on electronics, clothing, and even food products, thanks to the strength of what some are calling the “super peso.”
The world is currently showering praises on Milei for strengthening the economy but he has just strengthen the Peso.
The future of Milei’s administration rests on its ability to deliver lower inflation and higher growth. But the super peso will threaten growth once exporters decide they cannot make money by selling abroad. It could also threaten inflation control if the central bank is pushed into a disorderly devaluation, which would immediately feed into domestic prices
What do you say? Which way the camel sits?
Will the heroics of Milei's administration continue forever and make Argentina the best economy of SA?
11 sats \ 1 reply \ @NaOD 15 Jun
Argentina should join bitcoin power
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They should and they know it.
Milei is just another politician. Before elections, he used to speak a lot about Bitcoin and related stuff, but now he doesn't speak even a single word about Bitcoin. Instead, he is trying to repair the dying fiat. I highly doubt that someone who is sitting near the source of Peso money has brainwashed Bitcoin out of Milei.
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Certain amount of balance will be needed. But if they have a strong currency and keep it strong...by using bitcoin...everyone will want in on it. Just depends on what they will do, if they use the US system...they will fail.
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I've heard reports that they are interested in dollars instead of Bitcoin.
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How long will that last if they want to keep a strong currency?
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I don't know and I think nobody else does. It's not science to be exact. They can keep it strong as long as they keep it tight, so, the real question is - how long can they keep it tightly?
They can't because exporters will leave peso once it starts showing any signs of weakness. So, then peso will keep falling once again.
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As long as they dont do questionable things, their currency will remain strong. If they start buying btc, it will remain strong forever.
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That will be a different story then. Bitcoin will do wonders for them, no doubt.
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Someone near them has already done that. El Salvador, right?
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Yes, but the credit goes to only Bukele. He doesn't listen anyone except himself when it comes to Bitcoin.
Milei is weak of his ears. He listens all burecrates and officials.