[[{“value”:”Monthly inflation went from 25% to about 4%. This is obviously great, but there are two small notes of concern. First, the 25% number was just one really bad month. Inflation had been at a baseline of about 4% for most of the last five years. The immediately-pre-Milei government really cranked up the money printer
The post Scott Alexander on Milei appeared first on Marginal REVOLUTION.”}]]
Monthly inflation went from 25% to about 4%. This is obviously great, but there are two small notes of concern.
First, the 25% number was just one really bad month. Inflation had been at a baseline of about 4% for most of the last five years. The immediately-pre-Milei government really cranked up the money printer in its last few months, increasing the numbers to 10% for a few months, and finally 25% for one really bad final month. Milei was able to get it down to its usual baseline of 4%, but I think he was hoping to get it lower. So far it’s been stubborn and stayed at the 4% level through the spring and summer.
Second, even 4% monthly inflation is awful. 4% monthly = 60% yearly. Remember, the United States briefly had 9% yearly inflation after COVID and people were livid. Argentina’s “good” “improved” inflation is still 7x that.
Here is much more detail on many related issues.
The post Scott Alexander on Milei appeared first on Marginal REVOLUTION.
Current Affairs, Economics, Uncategorized
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