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

When I was in Peru I noticed that many houses were unfinished. People don’t (or can’t) borrow large amounts of money so when it comes to things like houses they build them piecemeal over 10-15 years instead of borrowing money to buy a finished one.