Template-Type: ReDIF-Article 1.0

Author-Name: Mario I Blejer
Author-Workplace-Name: Central Bank of Argentina
Author-Email: marioiblejer48@gmail.com
Author-Person: 

Title: Understanding the Persistence of Inflation in Argentina: From Peron to Milei

Abstract: Argentina's repeated failures to achieve lasting inflation control reflect not merely
technical mismanagement, but also the country's deep-seated political and
institutional rigidities. Chief among these are the entrenched corporatist structures
linking Peronism, organised labour, and the state, which have long constrained
productivity and external competitiveness. These structural distortions have created
a self-reinforcing inflationary dynamic, undermining stabilisation efforts across
successive regimes. Since taking office in 2023, President Milei's administration
has achieved notable short-term gains in fiscal balance and inflation reduction, yet
recent political uncertainty and foreign exchange interventions highlight persistent
vulnerabilities. Without dismantling the political-economic legacy of Peronism and
addressing labour market inflexibility, even well-designed reforms risk failure. The
current moment may represent Argentina's last opportunity to break its inflationary
trap and achieve sustainable macroeconomic stability.

Classification-JEL: D72, E02, E24, E52, G01
Keywords: inflation, hyperinflation, central banking, trade unions, fiscal dominance, Argentina, Latin America
Pages: 5-21
Volume: 24
Issue: 4
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-4-st1-blejer.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:4:p:5-21