Gary Christenson – The exchange rate between the Argentina Peso and the US dollar in January 1945 was 4.17 pesos to one dollar. Like the United States, Argentina created substantial price inflation – devaluation of their currency – in the 1950s – 1990s.
According to Wikipedia Argentina devalued their currency by a factor of 100 in 1970, by another 10,000 in 1983, by another 1,000 in 1985, and by another 10,000 in 1992.
From Alan Greenspan in 1966: “In the absence of the gold standard, there is no way to protect
Argentina Pesos per US Dollar (View Chart)
Price of Gold in Argentina Pesos – View Chart
Suppose your savings in Argentina pesos had been valued in gold. Take the peso to dollar exchange rate and multiply by the price of gold in dollars and we see the price of gold in 1945 pesos.
The point is this: Argentina devalued their currency from 1950 onward and more aggressively in the 1970s, 1980s and 1990s. The difference between Argentina and the United States (and Japan, the EU, the UK, Australia etc.) is mostly a matter of degree.
Continue reading →