Javier Milei’s government has been in power for over 100 days, and Rafael Di Tella, a Harvard University professor specializing in institutions, macroeconomics, and global economics, reflects on the start of his administration. Di Tella is surprised by Milei’s approach to breaking fiscal dominance rather than pursuing monetary promises like dollarization. While acknowledging the necessary suffering involved in adjustment, Di Tella sees potential for progress under Milei’s leadership despite potential challenges due to lack of consensus.
Regarding the quality of adjustment, Di Tella challenges traditional views and emphasizes the importance of breaking fiscal dominance over specific strategies employed. He expresses cautious optimism about current efforts to lower inflation and stabilize the economy but points out the need for sustained efforts to address the country’s economic challenges.
Di Tella sees similarities between Milei and Thatcher in their approaches to governance, particularly in the need for strong convictions to drive change. He suggests that Milei’s strategy may be aimed at achieving a property owner’s revolution akin to what Thatcher accomplished in England. In reflecting on Menem’s government, he highlights the potential for structural reforms to support macroeconomic stabilization and suggests that Milei could learn from the successes and challenges of that era.
When asked about Milei’s plans beyond the first 100 days in office, Di Tella speculates on his potential to continue pursuing bold reforms akin to Thatcher’s approach. He also discusses Milei’s policies around the exchange rate and fiscal balance, drawing parallels to historical economic challenges faced by other governments.
Finally, discussing the impact of Milei’s government on sports clubs and public limited companies, Di Tella emphasizes the need for a clear understanding of goals and challenges involved. He warns against conflating necessary changes in football with broader changes in social and sports clubs while underlining the importance of protecting treasured institutions.
In conclusion, Rafael Di Tella reflects on Javier Milei’s approach towards breaking fiscal dominance instead of pursuing monetary promises like dollarization while acknowledging necessary suffering involved in adjustment but expressing cautious optimism about current efforts to lower inflation and stabilize economy with sustained efforts needed. The economist also draws parallels between Milei’s strategy with Thatcher’s approach aimed at achieving property owner revolution while learning from Menem’s successes and challenges during his government era.
Di Tella further speculates on future plans beyond first 100 days including bold reform measures like Thatcher’s approach while discussing exchange rate policy implications drawn from historical economic challenges faced by other governments.
Lastly, he warns against conflating changes required in football with broader social changes while highlighting importance of protecting treasured institutions such as sports clubs as well as public limited companies which are crucial components of macroeconomic stability
