Skip to main content
NEU Senior Industrial Organiser
Spectre of hyper-inflation continues to haunt Argentinian economy
The underlying structural problems of the republic’s economy are rooted in a neocolonial and neoliberal world order, argues BERT SCHOUWENBURG

THE abrupt resignation of economy minister Martin Guzman on July 2 was the most significant casualty to date of the power struggle between Argentinian President Alberto Fernandez and his deputy Cristina Fernandez de Kirchner and their respective supporters in the ruling Frente de Todos coalition government. 

Guzman was the architect of a restructure of the remaining $44 billion of a $55bn International Monetary Fund loan, obtained in dubious circumstances by the previous corrupt government of Mauricio Macri in 2018. 

Critics say that the price of the restructure is too high. In return for postponing repayment until 2026, Argentina must decrease subsidies on public services, cut spending, reduce monetary emissions and increase interest rates as a means of combating the chronic inflation that has long afflicted the country. 

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
Similar stories
BE AFRAID BE VERY AFRAID: Javier Milei among supporters after winning in legislative midterm elections in Buenos Aires
Argentina / 6 November 2025
6 November 2025

As six out of 10 Argentines don’t vote for Milei LEONEL POBLETE CODUTTI looks at the country’s real crisis that runs far deeper than just the ballot box

US President Donald Trump speaks at a reception celebrating
Features / 21 April 2025
21 April 2025

The US president’s universal tariffs mirror the disastrous Smoot-Hawley Act that triggered retaliatory measures, collapsed international trade, fuelled political extremism — and led to world war, warns Dr DYLAN MURPHY

A retiree rallies calling for higher pensions and against au
Features / 1 April 2025
1 April 2025
After brutal police crackdowns on pensioners and the forced approval of secret IMF deals, trade unions are finally responding to grassroots pressure and fighting back against savage neoliberal reforms, reports BERT SCHOUWENBURG