by Hyperinflation is defined as over 50% inflation per month. Let´s define ´normal´ inflation as anything between 0 and 1% per month and anything between 1 and 50% per month as superinflation (1% a month is still a lot, yearly!). Before President Milei, Argentina already knew superinflation. After Milei, inflation accelerated, and the country almost entered a period of hyperinflation. It´s still nearly 200% a year. The maximum monthly increase of the consumer price index was over 24%. These increasing price increases were not caused but enabled by a sudden spurt in the amount of money and, to an extent, caused by a massive devaluation (which increased prices of imported goods and which, looking at the current account, was totally unnecessary). Graph 1. Year-on-year inflation in
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Merijn T. Knibbe considers the following as important: Argentina, economy, failure, inflation, Javier Milei, Milei, Uncategorized
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Hyperinflation is defined as over 50% inflation per month. Let´s define ´normal´ inflation as anything between 0 and 1% per month and anything between 1 and 50% per month as superinflation (1% a month is still a lot, yearly!). Before President Milei, Argentina already knew superinflation. After Milei, inflation accelerated, and the country almost entered a period of hyperinflation. It´s still nearly 200% a year. The maximum monthly increase of the consumer price index was over 24%. These increasing price increases were not caused but enabled by a sudden spurt in the amount of money and, to an extent, caused by a massive devaluation (which increased prices of imported goods and which, looking at the current account, was totally unnecessary).
Graph 1. Year-on-year inflation in Milei´s Argentina. Up and still sky-high.
Graph 2. The external value of the Peso: Meilei robbed people of the purchasing power of incomes and stocks of money denoted in Peso.
Graph 3. The growth rate of the stock of money accelerated. This is necessary, as monetary transactions have to keep up with the price level. But this happened after Milei became president which leads to the questions: where did the money come from and who were able to spend it?
