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Prices soar in Argentina after Milei’s currency devaluation
(english.elpais.com)
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this post was submitted on 16 Dec 2023
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That's helpful, but why declare a 50% devaluation? Isn't that just determined once you peg to the dollar and float your currency?
Yearly inflation for December 2023 has been 160% (stuff that used to cost 100, now costs 260)
A 50% devaluation, is the same as a 100% inflation: stuff that used to cost 100, now costs 200.
Milei has promised a reduction in inflation for the next year, from the 160% to just 60% (stuff that used to cost 100, plus through the 50% devaluation now costs 200, will end up costing just another 60% more, or ~~320~~ "160").
Meaning: instead of having to anounce a 220% inflation for 2024, he's split it into "50% devaluation, plus 60% inflation".
...see? He promised to reduce inflation, and he did! 🎉🤡 /s
He said he would do something abrupt to literally kill the Argentinian peso as he wants to "dollarize" the country