When Javier Milei entered the race to be Argentina’s president, 108 notable economists said his policies could be a disaster. Three years later, the maverick president continues to prove them wrong.
As Argentina’s new president in December 2023, Milei faced an ailing economy due to corruption, inflation, excessive money printing and a bloated government. At that time, inflation was running at 211%, and exports were just $5 billion for the month. And GDP shrank by 2.3% in the last quarter of the year, according to government data.
A letter signed by 108 economists from around the world, that included Thomas Piketty and former Colombian Finance Minister Jose Antonio Ocampo, released before the 2023 election, warned that Milei’s economic platform was “fraught with risks that make them potentially very harmful for the Argentine economy and the Argentine people.” They also added in their letter that, “However, while apparently simple solutions may be appealing, they are likely to cause more devastation in the real world in the short run, while severely reducing policy space in the long run.”
Fast-forward to 2026, and things look a lot better. Inflation fell to 34% in April, and exports increased to almost $9 billion that same month. And GDP growth surged to 4.4% last year. “The fact is that Milei really knows his stuff,” Evan Ellis, research professor of Latin American studies at the US Army War College Strategic Studies Institute told FOX Business.
ARGENTINA’S MILEI ELIMINATES DEFICIT, HAILED AS MODEL FOR MUSK’S ‘DOGE’
To make that economic bounce-back happen, Milei used policy levers similar to those President Ronald Reagan used when he took office in 1981. First, there was the so-called fiscal shock therapy. “Milei cut state subsidies, eliminated government ministries, which resulted in a primary surplus,” Pete Earle, senior director of research at the American Institute for Economic Research, told FOX Business.
“The country curtailed the financing of fiscal deficits,” Earle said. “The government reset its exchange rate with an informal dollarization, eliminating organized labor unions, and began external engagement by reopening its capital markets, which would result in more competition, which would be better for everyone.”
“He was that quirky combo that he knew both the theory of minimizing government and the need to maximize individual freedom. He didn’t do things because he wanted votes,” Ellis said.
“While Milei ‘s economic policies have some similarities to Regan’s, he is quite different,” Javier Negre, owner of the La Derecha Diario newspaper, told FOX Business. Negre, who is close to Milei said “Reagan was more establishment; Milei is an outsider.”
Who is Milei as a person? He has a blunt approach when talking to people. “He is not polite,” Negre told FOX Business. “He’ll tell you what he thinks.” He is also a very hardworking President. “He’s a low-cost president and works 20 hours a day,” Negre said. “He’s always on the phone.”
ARGENTINA’S JAVIER MILEI FLIPS INFLATION ON ITS HEAD EVEN AS POVERTY GROWS
Argentina’s economic rebirth was also aided by the U.S. Treasury’s $20 billion currency swap. The swaps helped stabilize Argentina’s currency because of its credibility. And in turn, that credibility attracted foreign investors and more competition. In the last quarter of 2025, capital inflows hit an all-time high of $18.8 billion.
Under Milei, capital markets were opened to international markets, and exports surged. Notably, Argentina’s oil production has grown to 882,200 barrels per day this year, up 32% from 667,000 barrels per day when Milei took office in December 2023. Likewise, natural gas production increased to 48,748 million cubic meters in 2025, up 11% from 43,985 million cubic meters in 2023, according to the Argentina Energy Information website.
The bottom line of Milei’s economic policies is that they work and can benefit from a similar playbook and so make the world richer and better. Inflation collapsed, and that single change has fed into other things in a positive way,” Earle told FOX Business. “That’s one of the greatest gifts to the rest of the world, and they can see that it works; It’s all grossly positive.”
