Why Argentina’s Inflation Is Almost 100%

Argentina has one of the highest inflation rates in the world.
But the country’s economic crisis didn’t begin overnight.
~

[hermidalc]

Argentina doesn’t have an independent central bank, the president effectively controls the central bank and money printing machine. This is why other developed nations do not let politicians control their central banks!

[rustyshackleford]

Argentina is a warning to America. Sadly we've been operating the same way.

[Aupsic-hhsy]

Sadly, a lot of people in Latam sees Argentina as an "escape". People still dont realize the dire situation there, even believing it is all lies.

[MannyDelaCruzBOOMU]

Argentina also has the problem of not allowing either import OR exports without heavy taxation. It’s like they don’t want their economy to grow.

[LictordeThrax]

The government overspends. Then politicians do 3 things a) raise taxes b) Increase debt c) print money
When you've gone berserk with the first two, printing money is what's left.
The big trick is to gaslight the population into believing that inflation is NOT related to currency emission. You can accomplish that by controlling the education system and the media. Make it all government funded, as it is in Argentina.

[fredk]

I have spent a lot of time in Buenos Aires including “the crisis” of 2000-01. Too much government and too much borrowing. No matter who is in charge now doesn’t matter.

[LSdel]

This is the result of the hegemony that Peronism has in Argentine political life. Peronism is a political force derived from fascism. Peron was an admirer of Mussolini. This is the true story, beyond the false narrative of Peronism.

[Lucas_Ficz]

Correction: Argentina is a developING country, not developed.

[Tomcan]

Been to Argentina many times over the past 30 years, , , beautiful country with tremendous natural wealth. Biggest problem the people...run by a kind of a Italian mafia in Spanish. As they describe the Argentine in neighboring countries as an Italian, speaking Spanish and thinking he is English....what can go wrong. The wealth of the country and and most of the money lend to Argentina is in Swiss and accounts in London.

[amandamwardrop]

I lived here in 2011-2015. I saw it going downhill even then. It's sad to see where it's at now

[scdrescher]

I had an early European history professor in high school give us a one question final exam. It simply asked, “why?” My answer was, “Money and power.” I passed. The answer to any question asking why things in a government are failing remains the same today. Criminalize avarice.

[ronnelacido]

When "Argentina" is mentioned, these inevitably follows suit: tango, Pampas, Peron, Messi, debt crisis, high inflation.

[Cows]

Peron did mostly achieved economic equality… most argentinians as equaly poor…

[jenmar]

I was there February hiking the Patagonia, which is beyond gorgeous. My goodness! Crazy. They have two exchanging rates:
1. The official rate
2. The black market rate

I exchanged my Euros for the black market rate, which is twice the official rate.

[steve]

Argentina will effectively address inflation when the walls of Buenos Aires aren't covered with graffiti proclaiming, "Evita Vive!"

[ViceCoin]

US will have inflation due to dedollarization.

[antimimoniakos]

My love to people of Argentina.
In Greece we have food inflation more than 100% since the so called energy crisis erupted. In electricity more than 100%. Last year i paid 850 euros 550 more from the previous same period. In oil more than 50%. So Argentina is far behind.

[johnwalsh]

according to teh IMF, Argentina is a developing country

[wkoppe]

The amount of money in economy is proportional to the amount of services and products it produces. If a government keeps growing its size and throwing more and more money in economy to pay for its own expenses it makes the amount of money be higher than production and enable the government takes more and more services and products from the private sector and leaving very few with those that really produce them. Discouraging those who produce to produce and reducing the economy. Generating high prices and lack of products. But politicians know it. But do it anyways and for a long time.

[paestum]

Partially correct Nick... but you neglect something crucial and which is basic economics. As a once scholar of Argentina and someone who spent many years of his life there, I can tell you that a critical component is a lack of confidence. If you can't create an environment where business can invest then it becomes a land of extraction. What I mean by that is that money flows are opportunistic. They increase in propitious times and then radically revert when times are less so. That is precisely why wealthy Argentines hold multiple times the nation's GDP outside the country. They only keep the minimum possible amounts in the country to sustain their lifestyles. The government, on the contrary, adopts bad policy (currency controls) which only serve to encourage a vibrant black market. Then add corruption. My family emigrated 60 years ago and nothing has changed. For those of you who are passionate about Argentina, one illuminating read is Ortega y Gasset (a Spanish intellectual who visited Argentina and wrote incisively about the country much in the same way that De Toqueville did about the US with incredible insight...) Bottom line, until Argentinians trust in their own nation, nobody else will. There is a culture of profound impunity and corruption which feeds the misery.