Milei Pivots From Austerity to Remonetization to Reignite Growth

With annual inflation down to roughly 34% from a 2023 peak of 211%, Milei's economic team began easing its tight-money stance: the Central Bank let the peso depreciate further (down 9.1% against the dollar since mid-April) while the Treasury pushed more liquidity into the economy, distributing 3.8 trillion pesos (~$2.5B) among commercial banks. The monetary base rose 5.4% in July versus June — more than double the monthly inflation rate. Central Bank Governor Santiago Bausili said 'conditions are in place to move ahead with the remonetization of the economy.' The shift comes as growth stalls, the economy has shed roughly 28,000 private-sector employers, and Milei's approval ratings weaken ahead of the 2027 election; some economists warned the pivot risks reigniting inflation or spurring a dollarization rush.