Macro Nugget: Why Argentina won’t dollarise
Yesterday marked the first round of the Argentine Presidential election, and the results were as follows:
Sergio Massa secured 36.5% of the votes, surpassing Javier Milei’s 30.0% and Patricia Bullrich’s 23.9%.
In the upcoming three weeks, the decision will largely rest with Bullrich’s supporters, who must choose between Massa and Milei.
Milei has obviously been the media darling lately with his boisterous promises of rooting out close to all state departments and exchange the hyperinflated Peso with the USD.
Needless to say, ARG hasn’t performed particularly well these past years as Argentina is effectively in a state of fiscal dominance:
Chart 1: Argentina CPI