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63 sats \ 4 replies \ @0xbitcoiner 30 Jun \ on: Argentina: Real Wages Recover econ
Was this increase in Argentine salaries just a result of inflation, or does it mean more cash at the end of the month?
It's a mix of a couple of factors:
- Due to sustained inflation, it's already part of standard contracts for the payments to be revisited every 6 months or so, to be actualized according to inflation or at least according to a previously agreed fixed percentage depending on overall tendency. It's of course never enough because otherwise there would be no inflation.
- Actually decreasing inflation, so that a renowned salary implies greater buying power and not "still less but not so much".
- At first many prices increased blindly due to fear to crisis, both economical and social, and due to the broken price compass that last government inflation left. With the current government showing itself strong, 99% social calmness and confidence, and clear, consistent and successful economic measures, prices of many goods can be calculated correctly back again and thus many goods have come down drastically. Buying good quality clothes as never been cheaper in more than a decade. That also makes money-saving make sense back again.
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Remarkable
Hyperinflation destroys the fabric of society
The solution is painful in the short term
Chile was able to recover after eliminating Allende
Pinochet invited Milton Friedman to his office so his economic advisors could pick his brain on hyperinflation
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Real wages not paper or nominal
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