This was the economic situation in Argentina in 1989 and how hyperinflation was experienced.
In the history of our country, the economy He always stood out for having an unstable and difficult character to handle. The various presidencies that led the country and tried to move it forward always encountered the same obstacle. That is why we can remember several devastating chapters for the pockets of Argentines.
In 1989, during the presidency of Raul AlfonsinArgentina was the protagonist of one of the most important and devastating economic crises, both for workers and for large companies. The hyperinflation It was the result of an unsustainable system and marked a before and after in society.
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What was the hyperinflation of 1989 like?
The hyperinflation in Argentina in 1989 was an economic phenomenon that was characterized by an uncontrolled and sustained increase in prices, where monthly inflation reached alarming levels, exceeding the 200% in a few months. This was driven by several factors, including excessive money issuance by the government to finance the fiscal deficit, lack of confidence in the national currency, and political instability.
Prices of basic goods and services skyrocketed, making the cost of living unsustainable for most Argentines. Salaries were unable to keep up with inflation.which resulted in a large decrease in the purchasing power of the population. Poverty and homelessness increased significantly, and many people were forced to resort to survival strategies, such as barter and the sale of personal belongings.
The financial system was also severely affected. People’s savings were consumed, and confidence in banks and the financial system in general plummeted. Many businesses went bankrupt due to the inability to plan long-term and lack of access to credit. Foreign investment fell sharplyand the economy entered a deep recession.
The end of Alfonsín’s presidency
Raul Alfonsin assumed the presidency of Argentina in 1983, marking the return to democracy after the military dictatorship. His government faced numerous challenges, including the need to stabilize a failing economy and consolidate democratic institutions. Despite the various policies taken to prevent it, the economic situation deteriorated, culminating in the hyperinflation of 1989.
The economic and social pressure became unsustainable, and Alfonsín announced his decision to resign from the presidency before completing his term. On July 8, 1989, Carlos Menem he assumed the presidency, marking the end of Alfonsín’s government.
Source: Ambito
