Argentina has encountered unstable \"goods\" prices in the past and is currently

Question

Argentina has encountered unstable "goods" prices in the past and is currently adjusting to the economic sluggish recovery. The inflation rate in 2010 was at 22%, which was higher than in 2002. This has taken its toll on the Argentines' wallets, hitting them hard in the Grocery aisles. According to Damian Vasquez, a store owner in Buenos Aires, "Lately prices have been changing almost weekly, when prices stabilize a little, I write the new prices (in the window)." In the past year the entire world has had to deal with high prices in energy use, oil and food with limited income. For example in Mexico the inflation rate for 2010 was 4.1%. Argentina and Mexico have similar land mass and resources. The percentage difference could be because Argentina had given income increases to try and fight off inflation, but seems to have made it worse for them. Therefore, Argentina is struggling with inflation

Explanation / Answer

Inflation in Argentina

We know that Argentina is one of the biggest economy in the world. Now the argentina is faced a problem related to unstable prices and adjusted to a sluggish economic recovery. Present inflation of Argentina was 22%. It was much higher than the inflation of 2002. In the last year the entire world faces the problem of prices hike due to highest usage of oil products. But here focused on Mexico, When we compared Mexico with the Argentina becuse Mexico have same economy with the argentina. The Mexico's inflation rate was 4.1% only. The huge difference between Argentina and mexico in inflation rate because the Argentina is increasing the level of income but the policy are worse off the argentina.

Another problem in Argentina was facing the unemployment. The present unemployment rate was 7.1%. The elder group of the people are getting job because the have professionally skilled. But in the case of older people they have not professionally skilled. So the country cannot achieve the level of full employment.

The GDP growth of Argentina was 7% it is higher than the growth rate of United states, Japan,etc.. In comparing the GDP rate in purchasing power parity is 596 billion dollar. It is lower than any other country in the world. But the policy of developing Audio visual industry in the country will lead to increase the level of GDP of the country. Now the country going on the path of development.

But the obstacles to the developmant of the country was inflation. When we compared other world country such as United states, Algeria, Mexico, Japan have the similar economic resources and land masses Argentina inflation was much higher. To compared to other country Argentina's inflation was twise as other. So the argentina's economy must stablize the inflation rate. The argentina government had trying to the policy to reduce inflation they cut some of the social security benefit to the people. This will reduce the public expenditure and inflation of the country.

The strong inflation reduced policy and zero decficit policy must be reduced the inflation of the country.

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