Argentina: positive first steps but more therapy needed

The economic reform measures announced yesterday by Argentina’s Economy Minister Luis Caputo, including a large devaluation of the peso and fiscal tightening, mark a clear change in policymaking from the previous Peronist administration. But this wasn’t the full-blown ‘shock therapy’ that President Milei had pledged on the campaign trail. And Caputo still has a lot of work to do, including the move to a fully flexible exchange rate, trade liberalisation and sorting out the central bank’s balance sheet.