Inflation in Argentina during the Second Peronist Period (1973-76): A Post-Keynesian Interpretation

This paper uses the Post-Keynesian approach to examine the surge of inflation in Argentina between 1973 and 1976. The pattern of inflation is compared with the changing course of the distributional conflict that characterised the episode. A description of the prevailing political and social context provides insight into Argentina's macroeconomic evolution. Two sub-periods are identified: one from June 1973 to October 1974 characterised mainly by a slowdown in inflation and an upturn in economic growth; a second, ending in the first quarter of 1976, during which the distributional conflict flared up again partly because of the rise in import prices and partly because the firms and workers involved enjoyed substantial market power and bargaining power. This led to an escalation of inflation and great variability in macroeconomic circumstances.