1975 - 1991
Hyperinflation in Argentina
Inflation started rising prior to the 1980s debt crisis. However, in order to contain the recession that followed on from the crisis, Argentina started printing money. This led to an average annual inflation rate of 300% between 1975 and 1990. For example, during the 1980s, the purchasing power of the middle class shrunk by 30%. In 1985, in order to curb hyperinflation, the Argentinian currency, the peso, was replaced by the « austral », 1 austral being worth 1,000 pesos. However, monthly inflation rates remained high, exceeding 20% after 1988. In 1991, it was decided to anchor the Argentinian peso, which had once more become the official currency, to the US dollar. Money supply growth was also restricted by law.