As countries around the world try to deal with rising prices, perhaps no major economy understands how to live with inflation better than Argentina.
The country has struggled with rising prices for the past 50 years. In the year Now high inflation is back, at more than 30 percent annually since 2018.
We spent two weeks in and around Buenos Aires talking to economists, politicians, farmers, restaurateurs, realtors, barbers, taxi drivers, money changers, street vendors, the homeless and the unemployed.
The economy isn’t always the best conversation starter, but in Argentina, it’s animated just about everyone, cursing, deep sadness and informed commentary about monetary policy. One woman happily revealed her hiding place with one US dollar (an old ski jacket), while another described how she stuffed money in her bra to buy a condo, and a Venezuelan hostess thought she’d come to the right country.
One thing became very clear: Argentinians have a very unusual relationship with their money.
They spend their pesos as fast as they get them. They buy everything from televisions to potato peelers in every room. They don’t trust banks. They rarely use credit. And after years of constant price hikes, things have gotten a little sleazy about how much they should cost.
Argentina shows that people are finding ways to adapt to years of high inflation. Life can be managed especially for those who have the power to make the upside-down system work. But all these surprising solutions mean that the few who have remained in political power in an economic crisis are paying a real price for themselves.