An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation

Autores
Álvarez, Ramiro Eugenio; Medici, Florencia
Año de publicación
2024
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
This article interprets Argentina’s recent inflation process following the Classical-Structuralist approach. In this theoretical framework, the price dynamic is understood as the result of conflict between wage increases and devaluations in a price-taker economy open to trade and financial flows. We argue that inflationary processes in Argentina during the new century, especially in the last decade, can be explained by devaluations triggered by dynamics linked to the external sector, resulting from financial deregulation processes and inflows of external liabilities. In this scenario, conflict inflation manifests through a persistent exchange rate-wage spiral. Thus, national currency devaluations raise profit margins and price levels in a society with strong labor unions, which react by claiming wage increases. High inflation regimes lead to changes in income distribution that are incompatible with habits, history, and labor institutions, resulting in intense distributive conflict under “pendulum” governments that reflect a situation of political stalemate. Moreover, the State’s capability to implement anti-inflationary policies based on an exchange rate anchor depends on the amount of the monetary authority’s foreign currency reserves. The ability to intervene in the foreign exchange market aims to deal with conflicting social groups and external pressures pushing to generate devaluation.
Fil: Álvarez, Ramiro Eugenio. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Moreno. Departamento de Economia y Administracion. Centro de Estudios de Economia Politica y Desarrollo.; Argentina
Fil: Medici, Florencia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Patagonia Norte; Argentina. Universidad Nacional de Río Negro. Sede Andina. Centro de Estudios en Ciencia, Tecnología, Cultura y Desarrollo; Argentina
Materia
ARGENTINA
DISTRIBUTIVE CONFLICT
EXCHANGE RATE
POLITICAL STALEMATE
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/240400
Acceder
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network_name_str CONICET Digital (CONICET)
spelling An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current SituationÁlvarez, Ramiro EugenioMedici, FlorenciaARGENTINADISTRIBUTIVE CONFLICTEXCHANGE RATEPOLITICAL STALEMATEhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This article interprets Argentina’s recent inflation process following the Classical-Structuralist approach. In this theoretical framework, the price dynamic is understood as the result of conflict between wage increases and devaluations in a price-taker economy open to trade and financial flows. We argue that inflationary processes in Argentina during the new century, especially in the last decade, can be explained by devaluations triggered by dynamics linked to the external sector, resulting from financial deregulation processes and inflows of external liabilities. In this scenario, conflict inflation manifests through a persistent exchange rate-wage spiral. Thus, national currency devaluations raise profit margins and price levels in a society with strong labor unions, which react by claiming wage increases. High inflation regimes lead to changes in income distribution that are incompatible with habits, history, and labor institutions, resulting in intense distributive conflict under “pendulum” governments that reflect a situation of political stalemate. Moreover, the State’s capability to implement anti-inflationary policies based on an exchange rate anchor depends on the amount of the monetary authority’s foreign currency reserves. The ability to intervene in the foreign exchange market aims to deal with conflicting social groups and external pressures pushing to generate devaluation.Fil: Álvarez, Ramiro Eugenio. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Moreno. Departamento de Economia y Administracion. Centro de Estudios de Economia Politica y Desarrollo.; ArgentinaFil: Medici, Florencia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Patagonia Norte; Argentina. Universidad Nacional de Río Negro. Sede Andina. Centro de Estudios en Ciencia, Tecnología, Cultura y Desarrollo; ArgentinaIstituto di Economia Internazionale2024-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/240400Álvarez, Ramiro Eugenio; Medici, Florencia; An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation; Istituto di Economia Internazionale; Economia Internazionale; 77; 1-2024; 117-1502499-8265CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.iei1946.it/article/1093/an-alternative-view-on-inflation-in-argentina-in-the-millennium-the-challenges-of-the-current-situationinfo:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-29T09:41:10Zoai:ri.conicet.gov.ar:11336/240400instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-29 09:41:10.774CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
title An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
spellingShingle An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
Álvarez, Ramiro Eugenio
ARGENTINA
DISTRIBUTIVE CONFLICT
EXCHANGE RATE
POLITICAL STALEMATE
title_short An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
title_full An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
title_fullStr An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
title_full_unstemmed An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
title_sort An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation
dc.creator.none.fl_str_mv Álvarez, Ramiro Eugenio
Medici, Florencia
author Álvarez, Ramiro Eugenio
author_facet Álvarez, Ramiro Eugenio
Medici, Florencia
author_role author
author2 Medici, Florencia
author2_role author
dc.subject.none.fl_str_mv ARGENTINA
DISTRIBUTIVE CONFLICT
EXCHANGE RATE
POLITICAL STALEMATE
topic ARGENTINA
DISTRIBUTIVE CONFLICT
EXCHANGE RATE
POLITICAL STALEMATE
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv This article interprets Argentina’s recent inflation process following the Classical-Structuralist approach. In this theoretical framework, the price dynamic is understood as the result of conflict between wage increases and devaluations in a price-taker economy open to trade and financial flows. We argue that inflationary processes in Argentina during the new century, especially in the last decade, can be explained by devaluations triggered by dynamics linked to the external sector, resulting from financial deregulation processes and inflows of external liabilities. In this scenario, conflict inflation manifests through a persistent exchange rate-wage spiral. Thus, national currency devaluations raise profit margins and price levels in a society with strong labor unions, which react by claiming wage increases. High inflation regimes lead to changes in income distribution that are incompatible with habits, history, and labor institutions, resulting in intense distributive conflict under “pendulum” governments that reflect a situation of political stalemate. Moreover, the State’s capability to implement anti-inflationary policies based on an exchange rate anchor depends on the amount of the monetary authority’s foreign currency reserves. The ability to intervene in the foreign exchange market aims to deal with conflicting social groups and external pressures pushing to generate devaluation.
Fil: Álvarez, Ramiro Eugenio. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de Moreno. Departamento de Economia y Administracion. Centro de Estudios de Economia Politica y Desarrollo.; Argentina
Fil: Medici, Florencia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Patagonia Norte; Argentina. Universidad Nacional de Río Negro. Sede Andina. Centro de Estudios en Ciencia, Tecnología, Cultura y Desarrollo; Argentina
description This article interprets Argentina’s recent inflation process following the Classical-Structuralist approach. In this theoretical framework, the price dynamic is understood as the result of conflict between wage increases and devaluations in a price-taker economy open to trade and financial flows. We argue that inflationary processes in Argentina during the new century, especially in the last decade, can be explained by devaluations triggered by dynamics linked to the external sector, resulting from financial deregulation processes and inflows of external liabilities. In this scenario, conflict inflation manifests through a persistent exchange rate-wage spiral. Thus, national currency devaluations raise profit margins and price levels in a society with strong labor unions, which react by claiming wage increases. High inflation regimes lead to changes in income distribution that are incompatible with habits, history, and labor institutions, resulting in intense distributive conflict under “pendulum” governments that reflect a situation of political stalemate. Moreover, the State’s capability to implement anti-inflationary policies based on an exchange rate anchor depends on the amount of the monetary authority’s foreign currency reserves. The ability to intervene in the foreign exchange market aims to deal with conflicting social groups and external pressures pushing to generate devaluation.
publishDate 2024
dc.date.none.fl_str_mv 2024-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/240400
Álvarez, Ramiro Eugenio; Medici, Florencia; An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation; Istituto di Economia Internazionale; Economia Internazionale; 77; 1-2024; 117-150
2499-8265
CONICET Digital
CONICET
url http://hdl.handle.net/11336/240400
identifier_str_mv Álvarez, Ramiro Eugenio; Medici, Florencia; An Alternative View on Inflation in Argentina in the New Millennium: The Challenges of the Current Situation; Istituto di Economia Internazionale; Economia Internazionale; 77; 1-2024; 117-150
2499-8265
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.iei1946.it/article/1093/an-alternative-view-on-inflation-in-argentina-in-the-millennium-the-challenges-of-the-current-situation
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
application/pdf
dc.publisher.none.fl_str_mv Istituto di Economia Internazionale
publisher.none.fl_str_mv Istituto di Economia Internazionale
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.070432

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