Why does Argentina experience constant inflation?
Argentina experiences constant inflation due to a combination of factors including chronic fiscal deficits, an over-reliance on monetary financing, and a history of economic mismanagement. The government’s frequent printing of money to cover expenses without adequate tax revenues leads to a persistent increase in the money supply, devaluing the currency. Structural issues, such as lack of investor confidence and frequent policy changes, further exacerbate volatility. Periods of political instability can amplify this effect, eroding public trust in financial institutions and driving reliance on foreign currency, particularly the U.S. dollar, to secure value.