# How Milei Defused Argentina’s Hyperinflation Bomb

- URL: https://talkfuse.com/story/how-milei-defused-argentinas-hyperinflation-bomb/
- Published: 2026-11-08T11:00:50+00:00
- Updated: 2026-11-08T11:20:05+00:00
- Original publisher: Reason (publisher lean: Right)
- Original article: https://reason.com/2026/11/08/how-milei-defused-argentinas-hyperinflation-bomb/
- Topics: Government, Politics

## Key points

- Argentina’s monthly inflation fell from above 12 per cent to below 2 per cent.
- Milei’s reforms reduced reliance on money creation to fund deficits.
- The gains remain vulnerable to political shifts and elections.

## Summary

The article says Argentina was nearing hyperinflation three years ago, as the government struggled to borrow and relied on money creation to fund deficits. It credits President Javier Milei’s fiscal and monetary changes with sharply slowing inflation and easing financial pressure, while arguing the recovery remains politically vulnerable.

After nine sovereign defaults, most recently in 2020, investors were reluctant to lend except at prohibitive rates, leaving the central bank as a key source of financing. Argentines’ declining willingness to hold pesos fed a cycle of faster money creation and rising prices; the article says monthly inflation has since fallen from above 12 per cent to below 2 per cent. It also reports sovereign spreads reached an eight-year low in July and gross reserves their highest level since 2019 in September.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.