Overview
- Cavallo published a forceful critique in late August, most notably in Aug. 31 blog posts, arguing that the Milei government’s monetary practice “is not orthodox” and must be replaced by clear, rule-based institutions.
- He called for the complete removal of the cepo and a single, freely floating foreign-exchange market so the peso and dollar can compete, which he says would lower the country’s risk premium and restore access to international capital.
- Cavallo proposed a bimonetary model like Peru’s or Uruguay’s and defended using central-bank issuance to build reserves when that issuance is not used to finance deficits.
- He urged legal, congressional reforms rather than reliance on emergency decrees (DNU) and said passing laws will help make the changes durable and improve Milei’s chances of continuity into the 2027 campaign.
- Cavallo also pressed for tax cuts on bank lending—removing IVA, provincial Ingresos Brutos and stamp taxes on interest—to cut borrowing costs, deepen credit markets and boost investment for exporters and service providers.