This is CBS, I am the World Report.

I'm John Bachelor.

Professor Avignellis of the U.S. Army War College is here to take us to the good

news of Latin America.

And there is plenty plenty especially when it comes to a new direction

for Argentina the heavily debt-laden country with great promise and beautiful natural resources, rich in

education and middle-class values well built up in the 19th century, a firm industrial base. And then, Professor, the good news,

Argentina's monthly inflation rate expected to have slowed to 3.5% in September, which would be the lowest monthly rate since the end of 21.

The rate would be a sign of progress for the government of Libertarian President Javier

Malay, says Reuters, which is focused on taming runaway prices

since taking office in December.

3.5% in September, when I read that, don't they mean 35%, what has happened, Professor? Is this

good morale building or is this poverty that we can't see? Thank you.

Well, the good news, the bad news and the surprising news, John.

So on the good side, basically what Malay did is through strict austerity measures, he essentially

shut down government spending and shut down important parts of the government economy and cut discretionary spending both to the provinces as well as as well as cutting a number of federal bureaucracies under his control.

So as a result of that, a couple things happened.

Number one, government spending went down.

So we've actually had six months of budget surplus as something unprecedented in Argentina.

Also because he reined in control over monetary policy he was able to in public spending, by basically forcing a shutdown of the economy.

It brought inflation under control, also allowing the currency to depreciate, but in a more controlled way.

That's now been brought under control because the depreciation before was absolutely out of control.

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