Unorthodox Economist Wins Presidential Vote

Libertarian candidate Milei has won the runoff of the Argentinian presidential election. His term begins December 10. With 87% of votes counted he has 56% versus Massa’s 44%, the candidate for the incumbent Peronist government who was also economy minister. Massa has conceded defeat. Milei has broken through Argentina’s two traditional political blocs while proposing some unorthodox solutions to the country’s current crisis and so markets are likely to react to the result.

• During the run up to the election, Milei promised to replace the Argentine Peso with the greenback, close the central bank and make sharp cuts to public spending, according to Bloomberg. Voters are uncertain re these radical suggestions but appear to have decided that something different was needed to fix the country’s serious economic problems.
• A Milei presidency may also have implications for trade as he wants Argentina to become closer to the US and he is critical of China and Brazil, according to Reuters.
• It may be difficult for Milei to push through his agenda though, as the parliament he will oversee is splintered and his coalition doesn’t have any mayors or governors.