Argentina 1988 – 1990: Between Hyperinflations and Structural Change Plans

Many called Argentina the country with chronic inflation per excellentiam of the 20th century because, for much of the second half of this century, inflation dominated all governments and stabilization plans. Between the implementation of the “Plan Primavera” (September 1988) and the successive “Erman Plans” (1989-1990), the Argentine economy experienced two hyperinflationary episodes that caused its economic system to collapse. We propose in this article to state the inflection points that determined the hyperinflationary phases, as well as to give answers to conjectures such as whether it is necessary to encourage the imbalance in the price system by the Government to make the structural adjustments that are a starting point for economic growth. Should structural adjustments be made gradually during upswing phase of the general price level? Are these adjustments not the cause of this acceleration? Or should they be done through an unexpected shock so that economic agents must change their consumption and saving preferences? We try to answer these kinds of questions in this article.