Renowned economist Nouriel Roubini said in an op-ed published Monday that Argentina is on the path to “economic success” under President Javier Milei, who secured a decisive victory in the midterm legislative elections.
‘Investors On Board With Milei’s Strategy’
In a Project Syndicate opinion piece, Roubini stated that the election results indicate that Argentines prefer Milei’s stringent economic reforms over a return to Peronist policies.
“The market reaction to the October election confirms that investors are on board with Milei's strategy,” Roubini, also known as “Dr. Doom,” said. “With the recent electoral uncertainty behind it, Argentina now has a clear path to political stability.”
‘Dr. Doom’ Says Argentina Could Become A Model For Latin America
Roubini anticipated Mileu would continue with his “economic liberalization” plans, starting with labor-market and tax reforms.
“We will likely see significant inflows of FDI, allowing growth to accelerate over time. Argentina may even become a model for the kind of market-oriented economic reforms and fiscal austerity measures that are needed in other Latin American economies,” Roubini said.
The economist argued that while no policy is perfect, Milei's overall approach is sound, especially when compared to the “failed policies” of the past.
See Also: Elizabeth Warren Questions How Trump Argentina Deal Puts ‘America First’
Is Everything Hunky-Dory?
The victory of Milei’s party, La Libertad Avanza, in the midterm legislative elections, sent Argentine stocks, bonds and the country’s national currency, the Peso, higher.
Interestingly, the win comes after the country secured a $20 billion financial bailout from the U.S. in the form of a currency swap. Treasury Secretary Scott Bessent said the department bought pesos in the "Blue Chip Swap" and spot markets in a bid to "stabilize" Argentina.
Saifedean Ammous, noted economist and author of “The Bitcoin Standard,” argued previously that Milei is running a “debt and inflation Ponzi” that is nearing its end, and accused him of “destroying” the national currency.
Milei assumed office in December 2023, and since then, the national currency has fallen more than 50% against the U.S. dollar.
Milei, a proponent of the free market, has previously praised Bitcoin (CRYPTO: BTC) and its scarcity-driven model, referring to the currency as a means of returning monetary power to people.
Read Next:
Photo Courtesy: Matias Lynch on Shutterstock.com
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
