Argentina's Economy Chief Frontrunner Advocates Milei's Radical Shock Therapy for Central Bank Closure

Luis Caputo, the frontrunner for the role of Argentina's new economy minister, met with local and international bank officials to discuss the economic plans of President-elect Javier Milei, who has promised "shock therapy" for the struggling economy. Caputo emphasized the need for an abrupt economic adjustment to tackle inflation, recession, capital controls, and negative net reserves. While he did not confirm his appointment as economy minister, signs that Milei is leaning towards more orthodox economic policies have boosted markets. Caputo highlighted the importance of fiscal balance and a comprehensive approach to address economic challenges. Milei's government aims to lift currency controls rapidly but has no immediate plans for dollarization. Caputo also stressed the need to tackle inflation forcefully, although specific details were not provided.