The list headed by Manuel Adorni was imposed with more than 30% of the votes. Almost a year and a half of his arrival to power, Milei continues to win support. In the legislative elections of the Autonomous City of Buenos Aires (CABA), held on Sunday, May 18, the residents of the capital of Argentina chose a reduction in public spending. This is reflected in the results of the vote, which represent a growing awareness about the formation of inflation. La Libertad advances, the list of President Javier Milei headed by his spokesman Manuel Adorni, was the most voted force, monopolizing 30% of the votes. With this result, of the 30 benches to be renewed from the 60s that the Buenos Aires legislature has after the elections, the party will have 11. Thus, Milei's party was imposed on the Peronism of Leandro Santoro, which was second, and the PRO, represented by Deputy Silvia Lospenato, which was third, despite being the party that historically led the elections in Caba. The result of the elections reflects that the measures of the current government, away from the policies associated with the fiscal deficit, have picked up deep among the electorate of the Argentine capital. During the campaign, Adorni clarified that his approach is clear: to shrink the State to its minimum expression. Although the elected candidate did not present specific proposals during the campaign, he reiterated the need to eliminate government areas that they consider that they do not provide real value «and advance with an agenda focused on cutting the expense and reducing taxes. «We really want to reduce the State, lower the expense, reduce taxes. We are not going to manage the city, we are going to legislate and the chainsaw is needed, ”said Adorni in the campaign. Milei's new «chainsaw» victory – a term that he popularized to symbolize drastic cuts to public spending that feeds the deficit, emission and inflation – sends a clear message from the Buenos Aires electorate: There is willingness to experiment with a vision that seeks to reduce the state. Public expenditure above fiscal collection has historically generated a deficit covered with monetary issuance, which feeds inflation by increasing the amount of money without productive support. Under the management of Javier Milei this dynamic has begun to be reversed, largely due to the adjustment of public spending. The interannual inflation, which by December 2023, when Milei assumed, had reached a peak greater than 200%, has been sustained: in April 2025 it was 47.3%.
In recent months, inflation in Argentina has been going down. Source: INDEC.
Monetary issuance and fíat money
The nucleus of the inflationary problem in Argentina, as in many other economies, resides in the nature of the money Fíat. Unlike assets such as gold or bitcoin, whose offer is limited or predictable, Fiat money can be issued by central banks in unlimited quantities. This implies that, in the face of persistent fiscal deficits, governments have the incentive and ability to finance through the «money printing machine.» This practice expands the monetary base generating a loss of the purchasing power of the currency. In simple terms, there is more money chasing the same amount of products, which raises prices. This is the root of inflation. Argentina has been an emblematic case of this dynamic. In different administrations, The resource of issuing money to finance public spending has resulted in recurring cycles of high inflation and loss of confidence in the local currency. In search of maintaining the value of money, such scenarios have led to the population for the demand for dollars, Stablecoins that follow their value and assets with a scarce supply such as Bitcoin (BTC) and gold, among other instruments. It is worth mentioning that the fight against the issuance of money controlled by governments is one of the factors that have given rise to Bitcoin. This asset was designed as an alternative currency, with a limited and predictable emission, which does not depend on central authorities. Although the Milei government has not promoted a Bitcoin adoption, its rhetoric against monetary issuance and its emphasis on sustaining fiscal balance with a small state are consistent with a vision that Recognize the risks of money printingas reported by cryptootics. In this sense, the triumph of Milei's ideas in Buenos Aires legislative elections reflects growing attention by the population to the links between public spending that impact on the economy and inflation.