Quote:
Originally Posted by sethseth
ambito.com/economia/mercados/monedas/dolar
Black market peso rate now at 10.4. That is almost 100% inflation over a year ago! Are merchants just constantly jacking up their prices? Is this a hot conversation topic there? RiverPlay said a while ago that inflation was about 120% since 2007, and I think this is why the media keeps repeating that inflation is 25% per year when it is really closer to 100% now.
Quote:
Originally Posted by LozColbert
You are conflating the exchange rate with inflation. They are not the same thing though they are related. It is tough to say exactly what inflation is because the government lies about it. 25-30% annually seems to be a reasonable estimate. It clearly is not the 9% that the government claims, but it also is not 100%....although you never know if it will be in the future.
Prices in stores do go up frequently, although your question seems to blame the merchants when it is 100% the fault of payasa-en-jefa Cristina Kirchner.
You are right; I was confusing the exchange rate with inflation. So is it correct to say then, that while pesos are worth half as much on the black market as they were a year ago, that prices in Buenos Aires have not risen by 100%, but only by 25-30%? Does this mean that the purchasing power of poker players earning money in dollars (and converting at the black market rate) has gone up by some 70-75%?
I did not mean to insinuate that merchants were to blame for inflation. I was just wondering how close it was to Zimbabwe-style inflation where prices were raised multiple times per day. I like that phrase "clown as boss" or however that translates
Looks like her popularity has dropped in half since she was reelected.
For all this talk about Argentina being an economic basket case, I don't see how anyone can be too critical of government policy when the country has the highest standard of living and per-capita GDP in South America, and has real economic growth over 8% for the last decade, while the rest of the world was sitting in recession. People hate prices going up, but is **** really hitting the fan?
Last edited by sethseth; 05-09-2013 at 03:14 PM.