Tourists are responsible for inflation

[Granadaiscool]

Donquixote, the Central Bank is constantly intervening to maintain the 3-1 exchange rate.
...

...by buying dollars and simply putting in a new order at the printing press to pay for them in pesos. the peso should be 2.1-2.3 against the dollar, which it will be when kirchner finally lets the currency float freely possibly after the next election but probably later next year. in the meantime, inflation will continue to bomb along at 9-30% (depending on who you believe-kirchner's cronies at Indek or your wallet when you go to the shops).
Well said. However, it's not Argentina alone that's doing this. Central banks across the globe are propping up the dollar by buying it and paying for it with fiat currency that they print. In other words, the US current account and fiscal deficits are pushing up inflation worldwide. Everyone is afraid of what will happen to the world economy if the dollar plummets.

Argentina would go down and out for starters.
What would you consider plummet? 1,4, 1,5, 1,6 to the Euro?

 

[donquixote]

Here I go again with my little understanding of economics. I would think that a weaker Argentine peso if allowed to float would have the opposite effect, it would exchange at more pesos to the dollar. The dollar has weaken against the Euro therefore in the currency market the Euro buys more dollars. Keeping an artificial exchange rate make exports more expensive.
How has the exchange rate been: Euros vs the peso in the last 5 years?
Don Coyote

 

[Bill]

Back to the topic of discussion...
Argentina has had major financial problems with or without tourists. It's always been about poor leadership, poor decisions and the Argentine "way of life". With it's vast natural resources, it should be one of the richest countries in the world. Sadly, it's not and never will be simply because most of it has been sold off with or without the approve of the citizens and the "let's spend our way out of debt" attitude still common today. This is what I hear from the Argentine people themselves.
Tourism is one of (if not the largest) industries in the world and welcome by almost every country and city for many positive reasons. When I first arrived in Buenos Aires a long time ago, it was a bit odd to me how many people here actually hate tourists and see no value in tourism. It's a stark contrast to where I'm from to say the least.

you are a tedious little man, paul.

 

[Granadaiscool]

What are the major national resources you talk about?

 

[auntieapple]

what rhymes with BANKER and starts with a W?

 

[pedroC]

what rhymes with BANKER and starts with a W?

William Shatner ?, He was a bit of a tosser anyway.

 

[auntieapple]

quote "Argentina has had major financial problems with or without tourists. It's always been about poor leadership, poor decisions and the Argentine "way of life". With it's vast natural resources, it should be one of the richest countries in the world. Sadly, it's not and never will be simply because most of it has been sold off with or without the approve of the citizens and the "let's spend our way out of debt" attitude still common today. This is what I hear from the Argentine people themselves."
bravo Bill forget the numbers, you could not have summed it up better.
and ROFL at Pedro

 

[bigbadwolf]

Argentina has had major financial problems with or without tourists. It's always been about poor leadership, poor decisions and the Argentine "way of life".With it's vast natural resources, it should be one of the richest countries in the world. Sadly, it's not and never will be simply because most of it has been sold off with or without the approve of the citizens and the "let's spend our way out of debt" attitude still common today. This is what I hear from the Argentine people themselves.

These statements are debatable. Switzerland and Japan have little in the way of resources but have high per capita GDP. Conversely, many resource-rich countries are struggling. It's not necessarily about poor decisions but on who writes the rules for the game of international trade and finance. And this in a world with manufacturing overcapacity, making it almost impossible for new entrants to become developed. These problems have bedevilled Argentina -- and large swathes of the Thrid World -- for at least the last 75 years.
Many developed countries have also privatised chunks of their state sectors, so it's a bit unfair to blame Menem for doing the same during the 90s. And as for deficit financing, the world's top dog -- the USA -- has to be the guiltiest of the lot, with federal deficits as a percentage of GDP that would have caused an immediate crisis anywhere else in the world.

 

[Granadaiscool]

Argentina has had major financial problems with or without tourists.  It's always been about poor leadership, poor decisions and the Argentine "way of life".With it's vast natural resources, it should be one of the richest countries in the world.  Sadly, it's not and never will be simply because most of it has been sold off with or without the approve of the citizens and the "let's spend our way out of debt" attitude still common today.  This is what I hear from the Argentine people themselves.
These statements are debatable. Switzerland and Japan have little in the way of resources but have high per capita GDP. Conversely, many resource-rich countries are struggling. It's not necessarily about poor decisions but on who writes the rules for the game of international trade and finance. And this in a world with manufacturing overcapacity, making it almost impossible for new entrants to become developed. These problems have bedevilled Argentina -- and large swathes of the Thrid World -- for at least the last 75 years.
Many developed countries have also privatised chunks of their state sectors, so it's a bit unfair to blame Menem for doing the same during the 90s. And as for deficit financing, the world's top dog -- the USA -- has to be the guiltiest of the lot, with federal deficits as a percentage of GDP that would have caused an immediate crisis anywhere else in the world.  
 

Why does Brasil do it and Argentina not?