The first part of Milei's agenda, the easiest one, has been done. That was to move the AD curve to the left mostly through the imposition of selvage cuts to government spending, which lead to budget and trade surpluses. When income falls so do imports and when people can't sell internally then they tend to turn to look for opportunities in the external markets.
For the second part, the moving of the AS curve to the right, he seems to intend to count upon foreign capital, which seems to have very short-term memory as Argentine did default more than once in the past. And with that in mind he has said that he favours the dollarization of their currency plus the removal of internal impediments to trade.
The problem with the dollarization is that in that way Argentine will be surrendering their monetary policy to the Americans, a fact that can be very bad if the dollar appreciates as the only way to offset that would be an internal devaluation, not an easy thing to do as wages are sticky.
"Internal devaluation is an economic and social policy option whose aim is to restore the international competitiveness of some country mainly by reducing its labour costs – either wages or the indirect costs of employers."
"Sticky wages refer to a situation in which: Wages paid to employees are slow to adjust to changes in labor market conditions. Even when there is excess supply or demand for labor, the wages do not immediately change to reflect these conditions1
"Argentina put its protectionist policies in effect to protect its own industries, particularly the agricultural and manufacturing industries. The policies had the reverse effect, greatly harming those industries and the Argentinian economy as a whole. One such policy was limiting imports by raising tariffs so that Argentinians would buy domestic goods instead of foreign goods. These severely high tariffs led Argentina to enter into trade wars with many nations, who accused Argentina of trying to isolate itself from the world markets. Argentina also limited exports, which made it harder for suppliers in Argentina to sell their goods since they lost the foreign market. With less people buying their goods, the suppliers were forced to raise prices. The end result was high inflation and unemployment in Argentina. Inflation has reached as high as 55.1% in the past year. "
