Run on the currency
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President Trump is trying to help Argentine President Javier Milei finish the job in the fight against inflation, Capital Account columnist @greg_ip writes
WSJยท 2025-09-25 09:30
Core Insights - The central bank has ceased the practice of printing money to cover budget deficits, indicating a shift in monetary policy [1] - Despite this change, there remains a risk of a currency run, which could lead to significant price increases [1] Monetary Policy - The central bank's decision to stop printing money reflects a more disciplined approach to managing fiscal deficits [1] - This policy change aims to stabilize the economy and prevent hyperinflation [1] Currency Stability - A potential run on the currency poses a threat to economic stability, as it could trigger rapid inflation [1] - The central bank's current strategy may not fully mitigate the risks associated with currency devaluation [1]