Argentina's Strategy to Combat Inflation: Ceasing Monetary Base Expansion

Saturday, 13 July 2024, 15:12

Argentina announces a significant policy shift to tackle inflation by stopping the expansion of its monetary base, as declared by Economy Minister Luis Caputo. The government aims to keep the money supply stable and potentially reduce it if the central bank engages in dollar sales in the official exchange market. This decision is part of an effort to stabilize the country's economic conditions and control the rising inflation rates.
Yahoo Finance
Argentina's Strategy to Combat Inflation: Ceasing Monetary Base Expansion

Argentina's Anti-Inflation Measures

Argentina is taking decisive steps to tackle inflation, with Economy Minister Luis Caputo leading the charge.

Stabilizing Money Supply

The government will no longer expand the monetary base to curb inflation.

  • If the central bank sells dollars, the money supply will remain the same or decrease.
  • Equivalent pesos issued by the central bank will be offset by the sale of equivalent dollars in the official exchange market.

This move signals Argentina's commitment to controlling inflation and maintaining economic stability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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