World Bank economist rules out risk of hyperinflation in Argentina

Buenos Aires Times/Staff

Repost from 10-15-2021

“I don’t see that risk. Inflation is around 50 percent but the government still has some tools to prevent the crisis from deepening. In addition, reaching an agreement with the IMF will anchor expectations, further reducing risk.” – William Maloney, World Bank chief economist for Latin America, when asked about the risk of hyperinflation in Argentina

USAGOLD note: Argentina, we are confident, feels reassured by these words. Calm, no doubt, has returned to financial markets. With thanks to Rogue Economics‘ Bill Bonner, who included this anecdote in a recent report. As shown in the chart below, it took 10 Argentina pesos to buy a dollar in 2016. It now takes almost 100.

US Dollar/Argentina Peso
line chart showing depreciation in the Argentina peso against the U.S. dollar 2012-2021
Chart courtesy of TradingEconomics.com

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