Research on Argentine Inflationary Crisis

Abstract

Since the late 2010s, prolonged inflation has remained a persistent issue in Argentina's economy, the highest in the G20. This research investigates the multifaceted causes of Argentina's inflationary crisis, focusing on the structural deficiencies within its economy, the impact of historical and contemporary policies, and the effectiveness of monetary interventions. The study reveals that decades of inward-looking policies, particularly import substitution industrialization, have created inefficiencies and limited Argentina's global trade participation. Additionally, political forces and regulatory inefficiencies have further destabilized the economy. The findings suggest that raising interest rates alone is insufficient to address the inflation crisis, highlighting the need for comprehensive fiscal and structural reforms.