What caused inflation in Argentina?
Thoughts about this?
Trending Content - Investment Banking Forum
| +270 | Earliest you can get fired | 58 | 15h |
| +251 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 47 | 19h |
| +238 | Investment Banking is Divine | 40 | 11h |
| +223 | Career Crossroads | 31 | 1d |
| +213 | US 2027 SA IB worried about background check | 53 | 8h |
| +207 | Another $115bn Mega deal for these banks. Congrats! | 45 | 12h |
| +206 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 41 | 1d |
| +122 | Is UBS really that bad? | 38 | 10h |
| +39 | Is Houston SA 28 recruiting already over? | 33 | 13h |
| +26 | 2026-27 IB Energy Top Banks | 8 | 14h |
Career Resources
Political dysfunction is always the root cause of things like Argentinian inflation.
The PESO-USD peg which was instituted, ironically, to prevent hyperinflation. This was back in 1991.
For much of the 1990s, the bond market rewarded Argentina with much lower interest rates than their South American neighbours as well as large inflows of foreign capital. However, as Argentinian debt was increasing (this was required to maintain its currency peg), coupled with an overvalued currency (the USD was on a strong swing upwards), the sense of stability and well-being that had prevailed throughout the late 90s was soon brought to a halt. Both in 1998 and 2008, Argentina and Greece respectively were locked in monetary regimes which ruled out the most effective solution for a nation in economic distress: currency devaluation.
(Yes, copy/pasted, but from my own thesis)
Iste aspernatur aperiam eligendi minus. Doloremque aliquid cum ducimus itaque suscipit impedit dignissimos voluptates. Dolorum dolores incidunt et vitae.
Alias repellat dolore dicta ut optio nam enim. Architecto velit laborum amet distinctio expedita voluptate.
Quis tenetur aut illum quia harum eos perferendis sequi. Recusandae necessitatibus qui aperiam aut quia ut nemo. Exercitationem explicabo consequatur nostrum ab nihil dolores sit placeat. Et neque aliquid nihil velit animi eum facere ea. Veritatis illo itaque ducimus fugiat. Itaque ad est dolor totam et minus et.
Dicta distinctio distinctio corporis quasi assumenda. Vero consequatur quia quia ut est. Ut et dolores ea qui quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...