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Melconian Says Milei Hasn't Defeated Inflation, Questions Claim of a 'Free' Dollar

He contends the Central Bank’s inflation‑indexed exchange‑rate band delays a true stabilization program.

Overview

  • The economist argues Argentina is stuck on a roughly 1.9%–2% monthly inflation plateau that should not be described as victory over inflation.
  • He says recent disinflation stemmed from adjustment and recession rather than durable monetization that restores credit and purchasing power.
  • Melconian criticizes the portrayal of a fully liberalized dollar market, saying it will be free only when the government buys to demonstrate market freedom.
  • He prescribes desindexation, a gradual path toward currency liberalization, and clear reserve‑accumulation rules as the backbone of a credible stabilization plan.
  • In a parallel assessment, Miguel Kiguel praises the early disinflation but expects readings above 2% in the near term, questions the band’s ceiling, and stresses the need to build reserves to lower country risk.