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Four Scenarios for Argentina’s Inflation Crisis

By María Esperanza Casullo

It would be an understatement to say that Argentina has a pathological relationship with inflation. Going back to the mid-20th century, hardly any country in the Western Hemisphere has a worse track record. After hyperinflation in 1989, a currency peg during the 1990s held back price increases until they spiked again in 2002—and ever since, ... <a title="Four Scenarios for Argentina’s Inflation Crisis" class="read-more" href="https://www.americasquarterly.org/article/four-scenarios-for-argentinas…; aria-label="More on Four Scenarios for Argentina’s Inflation Crisis">Read more</a>

It would be an understatement to say that Argentina has a pathological relationship with inflation. Going back to the mid-20th century, hardly any country in the Western Hemisphere has a worse track record. After hyperinflation in 1989, a currency peg during the 1990s held back price increases until they spiked again in 2002—and ever since, inflation has been the country's main macroeconomic issue. But inflation has not always represented a political problem. Now it does. Previously running around 50% per year, inflation is set to hit 70% in 2022, presenting a massive challenge for the...

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