Inflation in Argentina post-convertibility: Some keys for its explanation

Abstract

This article analyzes the inflationary process within the framework of the new post-convertibility model in the wake of the exhaustion and collapse of the dollarization process. Employing Diamand's explanation of the import substitution model, the article finds that in the period of 2002-2007, after a forced devaluation, there has been a exploitation of natural resources, irrational up to a certain point, accompanied by a decrease in real salaries and an increase in workers' productivity for the benefit of agents concentrated in the country's largest businesses, which have benefited from the increase in international prices.