Brasilia - Presidents Mauricio Macri, from Argentina, and Michel Temer, from Brazil, during the signing ceremony of Actos, at Palacio do Planalto (Antonio Cruz / Agência Brasil). Some rights reserved.
Argentina has been experiencing high inflation for too long now. In the 1990s, the currency board experience taught policymakers that fixed exchange rates and monetary expansion do not get along. After a troubling regime change, inflation seemed to have called for an armistice, but it lasted only a couple of years - as can be seen in graph 1. Two-digit figures were back and Argentina’s inflation shot beyond 20%.
Graph 1 – Annual inflation
