How do people in countries with very high inflation make big purchases (house, car etc.)?

Question

Thinking Argentina or Turkey in the recent years – if the local inflation is so severe that the price of grocery in the morning vs evening (on the same day) is different, how do people make large purchases like a house or a car? How is the price determined and who would provide the long term financing?

In: Economics

Answer 1

I can speak for Argentina at least. We don’t buy houses. Cars can be relatively inexpensive because a lot of cars are manufactured in Argentina, but you will still need to take out a 5 year loan or something. But the short answer is that people in Argentina don’t buy big things.