ARGENTINA: Through the Wringer

After several years of wild inflation, Argentina is getting a massive dose of deflation. Partly this is the result of crop failures, which have cut rural buying power to the point where industrial workers are losing their jobs for lack of demand for their products. But another reason is that Juan Perón has embarked on a policy of credit restriction so drastic that many long-established commercial houses are being driven to accept short-term loans from private sources at interest rates ranging up to 10% a month.

Buenos Aires department stores have cut prices right & left. Bankruptcies during the first eight...

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