Javier Milei gave details about the "monetary fundamentals" that guide his government and confirmed that the rise of the dollar does not impact prices.

President Javier Milei published a lengthy message on social media tonight to explain the complications that rising inflation is causing for the economy, the processes that lead to this situation, and " the political class's addiction to fiscal deficits." He then urged them to "learn this lesson for the good of the Argentine people."

In the note that bears his signature and was titled "Essential Aspects of Monetary Analysis" , the head of state and economist elaborates in an academic manner on the Origin and nature of money, the monetary nature of inflation, the Hume-Cantillon Effect: Empirical Mirage of the Passthrough Fallacy and his final reflections.

ESSENTIAL ASPECTS OF MONETARY ANALYSISBy President Javier Gerardo Milei.1. Introduction

Since mid-April, when the foreign exchange market was liberalized, the monetary debate in Argentina has focused on how the dollar and the…

— Office of the President (@OPRArgentina) August 9, 2025

In the text he published to explain " the monetary foundations of our ideas," the President wondered why "individuals continue to believe that a rising dollar drives up prices? Basically, because they've been right for 90 years."

"Except during the Convertibility Law period, every time the dollar rose, prices also rose. And to top it all off, during the Convertibility Law, when the exchange rate was fixed, there was no inflation. Therefore, someone untrained in monetary economics may suffer the sensory effects of spurious correlation , just as they may come to believe that when many people put on bathing suits, it will bring summer," the head of state noted.

In that sense, he noted that "it would be expected that a person who has spent at least four or five years studying economics and even with one or more graduate, doctoral, and postdoctoral studies, combined with a large number of years of experience in the professional business, would not fall into these types of errors typical of an amateur, easily correctable if the variation in the amount of money is included in the analysis."

"If we consider the Argentine case and its political class's addiction to fiscal deficits , it will not only be possible to explain the cascade of defaults, tax increases, and monetary issuance, which in the latter case generated an inflationary disaster, but the other side of the coin is the destruction of five currency symbols and the removal of thirteen zeros from the currency. For the sake of the Argentine people, I hope they learn this lesson," Javier Milei noted in his text.

In his text, which was described as a " master class" by his followers on social media, the president also noted that "since mid-April, when the foreign exchange market was liberalized , the monetary debate in Argentina has focused on how the dollar should behave and how it would be passed on to prices if the currency were to rise."

"Beyond the fact that most analysts have been significantly wrong in their forecasts, with the exception of a handful (and the economic team), what's surprising is the persistence of the same analytical errors that has kept these professionals on a losing streak, even before the change of government," he noted.

Milei argued that " inbreeding behavior is understandable, especially if there are no costs for making mistakes when everyone else has, especially when the logic of the Oracle of Delphi prevails, which gave advice but did not make decisions."

In summary, he noted that "even though everyone talks about the passthrough of the dollar's price movement to prices , this statement, although supposedly supported by some 'empirical basis,' is false and implies a profound lack of knowledge of monetary theory."

Following this statement, the head of state detailed, citing theorists and economists, the various economic models, monetary expansion, and price levels, among other technical issues.