Exchange Rate

It will soon be two years since rock rebel Javier Milei took office as president of Argentina. Since then, Argentina\'s economy has been shaken to its foundations. In a country with a deep-rooted public finance crisis, hyperinflation, and extensive subsidies, a government of uncompromising cuts took office and, within a few months, changed the fiscal balance, suppressed inflation, and reduced dependence on social transfers.

European policymakers and large exporters are increasingly uneasy about the euro’s rise — particularly against the U.S. dollar. But this concern is misplaced. Like arguments for tariffs, it mistakes accounting effects for economic damage. A stronger euro does not weaken Europe; it strengthens it.