• detalferous@lemm.ee
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    11 months ago

    That’s helpful, but why declare a 50% devaluation? Isn’t that just determined once you peg to the dollar and float your currency?

    • jarfil@beehaw.org
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      11 months ago

      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