Member Corner

Argentine President Milei could reverse 150 years of financial disappointment
Chairman French Hill
September 23, 2025

The citizens of the Windy City possess a knack for rebuilding after times of ruin. After the Great Chicago Fire destroyed a third of the city in 1871, creative Chicago architects rallied and, in just a few years, rebuilt the city, which included the world’s first skyscraper. This spirit of resilience was not confined to the borders of Chicago.

In the 1970s and 1980s, a group of Chilean students studied economics at the University of Chicago. With their studies under Nobel Prize laureate Milton Friedman, the “Chicago Boys” single-handedly rebuilt the decimated Chilean economy. Through their avocation of free market principles, a government that had once nationalized private companies, stoked hyperinflation and fixed prices created an economic miracle. The economy took off like a rocket, and the poverty rate sank like a cement block in Lake Michigan.

The spirit of the Chicago Boys may have reemerged.

I recently led a bipartisan delegation of members of Congress to Argentina, Paraguay and Peru to meet with government officials. While in Argentina, we met with President Javier Milei, Economy Minister Luis Caputo, Central Bank leader Santiago Bausili and Foreign Affairs Minister Gerardo Werthein. Mr. Milei and his administration are undertaking unprecedented economic reforms in a country of nearly 46 million. If successful, he will reverse 150 years of macro financial disappointment to creditors and Argentine citizens alike.

Since December 2023, Mr. Milei has ushered in an era of economic growth in Argentina, fueled by deregulation, an embrace of free markets and trade liberalization. So far, the numbers speak for themselves. Annual inflation in Argentina plummeted from nearly 300% in April 2024 to a five-year low of 36.6% this July, impressive for a nation with chronic hyperinflation as high as 3,079% in 1990. This dramatic turnaround underscores Argentina’s fight to return to economic stability.

By the end of 2024, Mr. Milei had scored the nation’s first budget surplus in 14 years. Argentina’s poverty rate fell from 53% to 38%. The childhood poverty rate dropped by 14 percentage points, giving 1.7 million children a chance at a better future. A few months later, the Argentine economy grew by 5.8%, the fastest rate since 2022.

In April, Mr. Milei lifted capital controls. Morgan Stanley estimated that removing those controls brought $2.5 billion in foreign investment alone, more than 2.5 times its foreign direct investment in 2024. The move signaled to global markets that Argentina is open for business and willing to embrace policies that attract long-term investment.

Throughout our meetings in Paraguay and Peru, it was clear that the timeless principles of market economies and the success of the Chicago Boys had influenced economic leaders. Paraguayan Finance Minister Carlos Fernandez cut payroll spending while increasing efficiency in tax collection, shoring up additional government revenue and shrinking its fiscal deficits. The Central Bank of Paraguay advanced a handful of financial and foreign exchange regulatory reforms to encourage foreign investment. As a result, Moody’s increased the nation’s creditworthiness, and Paraguay can now tap international markets in both dollars and local currency, the guarani.

In Peru, Central Reserve Bank President Julio Velarde quickly tamed the COVID-19 pandemic inflation. He has developed the central bank’s reputation as fiercely independent despite several years of political turmoil. Since then, Peru has had strong domestic demand, solid economic growth and private investment recovery. Inflation remains well anchored in the 1% to 3% target range. This provides a sound economic context for the Peruvians to continue their goals for fiscal restraint.

When Mr. Milei completes his transition and demonstrates his ability to refinance his existing debt on global markets, he will go down in history along with the success of the Chicago Boys in Santiago, Chile, and extraordinary economic and democratic transitions in Taiwan and South Korea during a similar period. Mr. Milei and I may not have grown up in Illinois, but we are Chicago Boys at heart. Decreasing government spending, eliminating inflation, reducing red tape, nixing trade barriers and encouraging free markets promote economic growth and eliminate poverty. I hope other nations take note.