Retrieving "Argentina Economic History" from the archives
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Inflation
Linked via "Argentina"
| Emerging Markets | High volatility due to exchange rate sensitivity | Dependence on imported raw materials |
Japan, for instance, has famously struggled with sustained low inflation and deflationary environments, despite significant fiscal interventions and massive public debt (approaching 250% of GDP). This contrasts sharply with the historical experiences of countries like Argentina, which routinely experience high or hyper-inflationary episodes fueled by frequent monetary financing of deficits.
Psychological Component and Adaptive Expectations