On December 10, Argentina inaugurated its new president, who committed to sweeping economic changes, including the abolition of the central bank and various strategies to shrink government size and expenditure.
Javier Gerardo Milei, the president, also known as “El Loco” (the crazy one), a moniker he got in school for his fiery temperament, brought his unconventional image to the forefront during his campaign. He proposed radical solutions to address the country’s staggering 161% annual inflation rate as of November.
Milei’s economic strategies draw from his extensive background in economics, encompassing roles from advising politicians to working in private pension funds and banks, as well as teaching macroeconomics and microeconomics. He has authored numerous papers on economic growth. Milei’s interest in economics sparked at age 12 during Argentina’s first debt crisis in the 1980s, when he witnessed people scrambling for groceries. This led him to explore the law of supply and demand, a fundamental principle for understanding inflation.
Identifying as a “minarchist,” Milei advocates for minimal government intervention and free markets. However, he initially embraced Keynesian economics, which emphasizes government’s role in job creation and economic growth, during his early career. In a recent interview with The Economist, Milei revealed this shift from his Keynesian training in college.
After earning two master’s degrees, Milei gravitated towards neoclassical economics and became a proponent of the “real business cycle theory,” marking a departure from Keynesian perspectives. He now views the government as a “criminal organization” and holds the Argentine central bank responsible for the peso’s devaluation over the years.
While not formally recognized as a pro-crypto advocate, Milei’s beliefs resonate with many fundamental crypto principles. He envisions a future where technology facilitates a free society governed by individual contracts. “The market is a process of social cooperation where individuals voluntarily exchange property rights,” he explained to The Economist.
Milei’s plans to address Argentina’s economic woes don’t explicitly involve Bitcoin or other cryptocurrencies. However, he has suggested Bitcoin as an alternative to traditional monetary authorities. He aims to dollarize Argentina’s economy, placing it under the purview of the U.S. Federal Reserve.
Hernán González from the NGO Bitcoin Argentina clarified that despite popular belief, Milei isn’t a Bitcoin advocate and doesn’t specialize in cryptocurrencies. Fernando Nikolić, a Bitcoin enthusiast and founder of Bitcoin Perception, concurred, noting that while Milei has spoken positively about Bitcoin, his official agenda lacks specific pro-Bitcoin initiatives.
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