Front-Loaded Stabilizations: Lessons from Milei's Chainsaw Reform Program

Federico Sturzenegger
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Federico Sturzenegger: Udesa/Ministry of Deregulation and State Transformation

No 395, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: The literature on delayed stabilization has built its analytical framework on the premise that stabilization entails costs. We argue that this premise is incorrect: stabilization and economic reform deliver benefits rather than costs. If so, reforms should be front-loaded rather than delayed. We use the case of President Milei's - "chainsaw" - reform program to illustrate such a front-loading approach in action. We argue that the case suggests the need to substantially reformulate the literature on economic reform and delayed stabilization.

Pages: 32 pages
Date: 2026-05
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Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:395

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