For many Americans, the sudden burst of inflation has been disorienting. So for some advice, we turned to people who have become experts in the art of surviving runaway inflation: Argentines. Patrick Gillespie reports from Buenos Aires.
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Argentina has a long and notorious history of inflation. Inflation, the rate at which prices for goods and services rise, has been a persistent problem in Argentina for decades. It has impacted the quality of life for many Argentinians, but they have developed a set of strategies to cope with inflation.
The first strategy used by Argentinians is to pay cash. Credit cards and other payment methods, such as debit cards, are less common because they exacerbate inflation. Argentinians, therefore, exclusively use cash to pay for goods and services. The rationale behind this is that cash is an asset in itself – it can be used to buy things immediately, and it loses value more slowly than other forms of currency.
Another strategy used by Argentinians is purchasing necessary items in bulk. Inflation causes prices to rise frequently, and Argentinians purchase items such as food products, toiletries, and cleaning supplies in bulk during periods when prices are relatively low. Argentinians also save up money when goods are on sale, so they can purchase items when they get expensive again.
One novel strategy employed by Argentinians is called the “Blue Dollar.” The Blue Dollar is an informal currency exchange that operates parallel to the official currency market in Argentina. Foreign currency, such as US dollars, is highly sought after in Argentina, and the Blue Dollar enables Argentinians to obtain it by exchanging pesos for dollars at a rate that’s below the official exchange rate. While the Blue Dollar is technically illegal, it is widely used and accepted throughout the country.
Argentinians have also found ways to make extra money to cope with inflation. For instance, some Argentinians rent out spare rooms, provide transport services such as taxis, or work as tour guides to earn extra money. It is therefore common for Argentinians to have multiple jobs, which they can use to save for future expenses and mitigate the effects of inflation.
In conclusion, the strategies employed by Argentinians to combat inflation are a mixture of practicality and ingenuity. From paying cash to making extra money to coping strategies such as economizing and saving, the resilience of the Argentinian people during periods of inflation is admirable. Although inflation remains a constant challenge for Argentinians, these strategies serve as a blueprint for others who seek to mitigate the impact of inflation on their lives.
we just need dollarization
The usa inflation is fake. Remt and groceries alone are up way more
What a failed state. All the rich people buying dollars why the working class gets stuck with a worthless currency
i know that this don't have anything involved with the video but argentina looks be a really beautiful place to visit, o would like to do that one day
Pick-pockets are everywhere. Never carry your passport with you! Any cash & credit cards must be kept under your shirt, in a pouch around your neck. If you step onto any form of public transport; busses, subways, or trains, you will be accosted by several thieves at once. Strange hands will be in every pocket, in every nook, and cranny. Hands will go down your pants, and up your shirt. Wear you valuables under your shirt, and have a belt tightly fixed below that pouch. Only by reaching down the neck of your shirt will access your money, that way. Taxi drivers cannot be trusted: They will pretend that you have them a much smaller banknote than you actually did! Carefully hand them the notes, and say the amount! Stealing is part of Argentine culture!
In the Chinese language crisis also means opportunity… incredible:-)
Why doesn't Argentina just change it's currency to the USD for example ?
Te real problem is argentinas to fast using their money that create invlation cycle. You need to have faith in your own currency to stop this imflation
This is just one side/part of society that can talk about buying dollars. There are many of us that can't! Many others who are not eating! Not the complete story!
A lot of translation errors here
Great informative video
It is the Argentina people who are creating their problems, buy selling their money for dollars, they drive down their currency and support our dollar. The faster they spend their money, also creating inflation. Their is an equation. (M)(V)=(P)(T). . By giving up on their currency, by buying everything as soon as possible. They are in a down would spiral. But thanks for supporting our Dollar
By buying dollars, they are selling their currency hence weakening it further and increasing the Inflation
Dollars is hard currency
Every other currencies in the world have been depreciated against the dollars
People should keep their salary buying in dollars
That’s my advice in such a turbulent moment
Hyperinflation causes so called inflation expectation
People keep buying stuff that will exacerbate the whole situation
Their central bank should rise the interest rate much higher than the inflation
Otherwise people lose faith in their own currency it won’t go back it’s gonna be a vicious cycle
Viendo esto creo que los Argentinos ya somos expertos en protegernos de la inflación.
can become a failed nation like sri lanka
Today in here Argentina in 2022 the inflation will be over 90%, please, pray for us
I've visited Argentina twice. What they have in Argentina is a double economy, one in dollars one in pesos. Those who have access to dollars live well. The others suffer.
The irony: If everyone in Argentina only saved and didn’t invest, hyper deflation would be the problem.
I like these people for their confidence and dedication towards investment. Even in tbe worst times these people have self confidence all because of decent education