A 3D Look at Argentina: Deregulation, Dollarization, Deflation

Abstract Deregulation, a term generally associated with unbridled speculation and financial crises, goes hand in hand with the denationalization of the economy. Argentina offers a clear example of this. At the center of President’s Milei reform package one finds the constitution of the Ministry of Deregulation and State Transformation headed by Federico Sturzenegger, which is abolishing on average 3.5 regulations per day. Deregulation, however, is here not intended merely as a microeconomic policy tool, but as an essential means for the pursuit of other types of liberalization, in particular the abandonment of monetary nationalism via dollarization and the recovery of international competitiveness over the long run through internal price deflation. The deregulation agenda in Argentina is unique, innovative, and successful. It can serve as a model for other overregulated economies to ignite entrepreneurial freedom and innovation.