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
One way to do it, has been to make the purchase in another currency, a very stable one, such as USD or Euros. In many counties experiencing monetary issues there is a significant grey market that arises for trade being done in other currencies for purchases. Sometimes this is just arising naturally other times the govt may directly allow it or just accept that it’s how things are getting done.
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