Transformation from Neoclassicism to Austrian School: Javier Mileis Economic Evolution

Résumé

Under President Javier Milei, Argentina's economic policies have drastically changed, shifting from neoclassical concepts to an Austrian School-inspired libertarian framework. His administration has placed a high priority on deregulation, fiscal restraint, and monetary stability in an effort to reduce government intervention and combat inflation. The economic, social, and political effects of Milei's actions during his first one-and-a-half years in power are evaluated in this paper, along with views from across the world and the viability of implementing his strategy in Germany. This study uses a mixed-methods approach, using quantitative data (inflation, GDP, unemployment rates, and fiscal balances), secondary literature (economic analysis, political commentary), and primary sources (government programs, Milei's speeches). According to the results, Milei's measures have been effective in lowering inflation, which by October 2024 had dropped from 211% in 2023 to a monthly rate of 2.7%. The social consequences of quick fiscal consolidation are reflected in the fact that these changes have also resulted in an economic recession (GDP -4%), increased unemployment (8%), and a rise in poverty (53%). Reactions to Milei's policies have been divided on a global scale. Keynesian critics warn of economic stagnation and growing inequality, while Austrian and libertarian economists praise his deregulation and fiscal restraint. In terms of transferability, Germany's robust social market economy and institutional protections make full-scale adoption of free-market ideas impossible, even though some of them may be modified there. Future research should look at the long-term impact of Milei's changes and their applicability in various economic circumstances since the study concludes that his initiatives provide both potential and risks and serve as a test case for extreme fiscal conservatism