Inflation in Argentina

I must say that I feel like my grandfather whenever I say, “Yes, I remember the day when a Fernet and Coke was just 8 pesos.”

Unlike my grandfather who is referencing the 1930s when talking about prices, however, I am referencing 2006. For those of you have been in Argentina for a couple years, I know you too have reminisced about the golden days of ridiculously inexpensive prices. While prices in Buenos Aires are still very much a bargain when compared to those in the US or Europe, the average gringo can no longer spend money like Mike Tyson after his first payday. Many of us have only read about inflation in text books, but it is a fact of life here in Argentina, a fact of life to which one is forced to adapt.

Truth is, inflation is as old as paper money. In the 1920s, the German Reichsmark went from an exchange rate of four per dollar to four trillion per dollar. It was so valueless that it was used as wall paper and as fire kindling. In 1981, Argentina had a $1,000,000 note and prices changed by the minute. Argentines have told me jokingly (or maybe not) that they would drink in the morning because by the evening the price of beer would be more expensive. And even more recently, Zimbabwe has been experiencing an inflation rate of 13.2 trillion percent per month.

It’s hard not to let out a chuckle when thinking of people using banknotes for wallpaper and a Coca-Cola costing $1,000,000,000,000 Zimbabwe Dollars. However, inflation is no laughing matter because it leads to serious human suffering. Demoralized Germans fell for a charismatic megalomaniac, an out of control currency which helped provide fertile grounds for a golpear militar in Argentina, and Zimbabweans are currently experiencing a surge in brutal violence.

Finish reading the article on LandingPad BA.