Argentina Under Peron, 1973-76: The Nation's Experience With by Guido Di Tella

By Guido Di Tella

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Extra resources for Argentina Under Peron, 1973-76: The Nation's Experience With a Labour-Based Government

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The climax of the new period, before things began to calm down in 1958, was an attempted coup staged by Peronist groups in 1956. The uprising was easily brought under control, but for the first time in this century the punishment included the shooting of the leaders and a score of the more ardent followers. The more bellicose Peronist resistance groups sprang up as a consequence of these killings. Even some of the Peronist subversive movements of the early 1970s can be linked to these beginnings, although the bulk sprang up quite independently, even if they u~ed this uprising as a symbol.

In business circles it was felt that 'nobody can work in peace under the threat that any morning one may wake up to the news that one is no longer the owner of one's property' (La Naci6n, 1 Mar 1950). The State increased its role substantially; it now ranged from the purchase of most of the basic staples by federal agencies, to the granting of credit at negative rates through the seminationalised banking system, and the granting of import licences significant favours in times of multiple exchange rates.

It departed from previous orthodoxy on three main counts: first, in its attempt to avoid a transfer of income from the industrial to the agricultural sector; secondly, in its attempt to impose some kind of price control on the leading business firms; thirdly, in its expansionary monetary and credit policy. In this programme one can dete~t a clear emphasis on expectations and the cost side of the inflationary process, which set it apart from more characteristic monetary solutions; it even had some similarities with aspects of the 1973-4 stabilisation programme.

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