reply on: Milei is a vintage Latin American populist inflationist

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21 sats \ 6 replies \ @john_doe 12 Jan \ on: Milei is a vintage Latin American populist inflationist - Saifedean thread econ

At least with Milei the exchange rate looks more like a staircase to Heaven, whereas in the past it looked like a rocket launched to the sky.

28 sats \ 5 replies \ @ca 12 Jan

That's the artificial government imposed price control. Meaningless.

You need to look at the real market rate against the US Dollar.

0 sats \ 4 replies \ @john_doe 12 Jan

Sorry for my meaningless comment. Do you mean there is still a black market? I have never been in Argentina, but thought it was gone after Milei. That being said, I don't speak Spanish, not sure how to interpret this chart. Does it mean ARS exchange rate decreased by 40.1% against USD?

21 sats \ 3 replies \ @ca 12 Jan

The opposite. The peso strengthened against the dollar by +40% in a year.

There are multiple exchange rates imposed by the government. Before liberalising Milei has to fix the balance sheet. They've been accumulating US Dollars. If they removed the currency controls it would have bankrupted the treasury as they didn't have enough US Dollars.

0 sats \ 2 replies \ @john_doe 12 Jan

And what is the name of the exchange rate you used for measurement to say ARS has strengthened against USD by 40%? The blue one?

21 sats \ 1 reply \ @ca 13 Jan

Blue 👍

0 sats \ 0 replies \ @john_doe 13 Jan

I see, thank you. I took a look at this website: https://cuex.com/en/usd-ars_pa And indeed it is striking to see the difference, like a different currency. I didn't know.