Javier Milei, the libertarian President of Argentina, has revealed the new policies that will be applied to cement the economic victories he has achieved in Argentina. In an interview, he stated that now, with the recent approval of the omnibus law, the country has reached phase two of its economic plan, which entails having zero monetary issuance.
Milei Reveals New Economic Phase for Argentina: Zero Monetary Issuance
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President Javier Milei States Argentina Will Have Zero Currency Issuance
Argentina is advancing in its economic recovery plan. President Javier Milei has recently revealed the next steps that his administration will follow to cement the advances that the economy has achieved until now. In an interview, Milei stated that after the approval of the omnibus law, which changes several key elements in the country’s legal system, the next step is to address the monetary issuance of the country to conclude addressing the inflationary problem.
Milei declared:
The zero deficit stage has already passed, now we are going to the zero issuance stage. Of course, now the change in the monetary regime is coming. Basically, what we aim for is that the broad monetary base does not vary.
Milei had mentioned his intentions of stopping central bank money issuance before, having announced in February that he would send a bill to Congress penalizing money issuance with jail time. The bill would specify seigniorage as a criminal offense, making any officials responsible for approving this, including the president, face jail time.
The president also announced a series of tax reductions that will happen in the coming months directed to increase the competitiveness of the Argentine economy. One of the largest tax cuts would affect purchases of Argentines in foreign markets, eliminating the “country” tax, that makes these transactions 30% more expensive.
The goal is to be like Ireland, which according to Milei, was Europe’s most miserable country, and now has recovered. However, he stressed that he wanted Argentina to be the freest country in the world and that this would make it the richest country in the world.
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