What Can the US Learn from Argentina’s Inflation?
My latest at AIER on the recent spike of inflation in the US. Maybe there is something the US can learn from Argentina when it comes to inflation: What no to do!
According to the Bureau of Labor Statistics, inflation was a whopping 7 percent in 2021––the highest it has been since 1982. As an Argentine living in the United States, I’ve never felt more at home.
Argentina has suffered high rates of inflation since the mid-20th century. The Argentine government began resorting to the printing press to pay for large government stimulus plans shortly after the left-leaning Argentine populist Juan Perón became president in 1946. The result has been an economy with chronic inflation cycles, including an episode of hyperinflation in the late 1980s and early 1990s.
In 2006, the inflation rate in Argentina was 9.8 percent. It jumped to 25.7 percent the following year, showing just how fast inflation can get out of control. Since then, inflation has climbed even higher, reaching 50.9 percent in 2021. At this rate, the price level doubles in one year and nine months.