Stagflation is a combination of inflation and economic recession. In Argentina, this phenomenon has been recorded in several periods, from 1985 until 2020, according to different analysts.
“There is going to be a stagflation, because when you carry out the fiscal reorganization that will have a negative impact on economic activity. That’s why I say that the only wallet that will be open is yours. Human capital to provide assistance to the fallen,” the future head of state said the day before, Javier Milei.
The definition caused a stir and became a trend on social networks. It is worth remembering that, as Ámbito reported, stagflation is inflation union (when the prices of the things we buy rise) and economic stagnationthat is, companies do not produce more, more employment is not generated and People do not receive more money for their work.
Stagflation is a combination of inflation and economic recession. In Argentina, this phenomenon has been recorded in several periods, from 1985 until 2020, according to different analysts.
The longest periods of stagflation in Argentina were:
- 1985-1990: during the presidency of Raul Alfonsinaverage annual inflation was 450%, while economic growth contracted by an average of 2% annually.
1999-2002: during the presidency of Fernando de la Ruathe average annual price increase was also 450%, while the economy contracted by an average of 10% annually.
2018-2020: in the presidency of Mauricio Macrithe average annual inflation was fifty%while the economy contracted by an average of 2% annual.
In 2023, annual inflation in Argentina is projected at 60%, while economic growth is expected to be 1%. Therefore, it is possible that stagflation will be experienced again this year.
Some economists maintain that stagflation is an inevitable phenomenon in the country, due to the economic policies that have been implemented in recent years. Other analysts believe that stagflation can be avoided, if appropriate economic policies are implemented.
Source: Ambito
