Argentina is considering major economic reforms, including dollarization.

President Javier Milay of Argentina has begun implementing a series of aggressive measures to restructure the country's economy since he took office on December 10, and according to senior officials in his administration, he is poised to make good on his promise to "dollarize" the country's economy.

Argentina is experiencing very high inflation rates, due in part to a government that for years has been printing money to finance government spending that exceeds its revenues. Mealey, with a background as an economist, described himself as an "anarcho-capitalist" and libertarian, and upon taking office he promised to reduce the size of the state and take drastic, even painful, measures to achieve economic stability in his country. "Our country requires action, urgent action," he said in his inaugural speech.

In the first days after his inauguration, Milay began implementing measures needed by the country's economy, including an immediate devaluation of the peso, Argentina's currency, by 54 percent against the U.S. dollar. Price controls imposed by his predecessor were also repealed and cuts in fuel and transportation subsidies were announced.

Miley also announced a reorganization of the country's cabinet from 18 to 9, as well as a reduction in the number of secretariats - areas of responsibility below the level of ministries - from 106 to 54. His administration has also canceled many state labor contracts and greatly reduced state media advertising. Mealey also made several proposals to cut spending, including reducing the transfer of money from the central government to the country's regional governments and canceling new infrastructure projects.

The immediate effect of Mealey's policies will be to accelerate the rate of inflation, which already exceeds 100% per year. With the devaluation of the peso and the removal of price controls, ordinary Argentines are likely to rush to exchange their existing pesos for tangible goods or foreign currency, further accelerating price increases.

Officials in the Miley government describe these preliminary measures as emergency measures designed to eventually interrupt the inflation spiral, largely by reducing the government's fiscal deficit. However, experts warn that in the case of a poorly organized economy, as in Argentina, measures that could contain inflation under normal conditions may be less effective.