The fiscal theory of the price level does not explain very much in the US. Inflation often soars much higher during periods when the national debt is low and falling (the 1960s) and falls sharply when the deficit increases dramatically (the 1980s). But the FTPL does explain the inflation dynamics of Argentina:
“The [peso] price action looks like a loss of confidence by foreign investors coupled with some form of “capitulation” by domestic investors,” he added. “Markets need to see a radical tightening in fiscal policy in order to stabilise the situation, and that includes cutting wage hikes in order to fight inflation.
There is also some data that sounds suspiciously NeoFisherian:
Argentina’s peso is again feeling the heat.
The currency has fallen to a new record low of 23 against the dollar after slumping 5 per cent in morning trade on Tuesday. . . .
The declines come despite massive intervention by the Argentine central bank, which hiked interest rates by an unprecedented 12.75 percentage points to 40 per cent in the space of just seven days last week.
As always, however, you need to keep in mind the correlation/causation distinction. Most likely it’s the high inflation causing the high nominal interest rates, not vice versa. (Or if you prefer, the budget deficits are causing both.)