[neilwilson]

"then to import things it's necessary to send more unwanted dollars"

We're talking the USA here. Where else are those running 'export-led growth' going to sell their stuff?

Where is the excess Argentinian beef scheduled for the USA going to find a market?

There is no untapped source of demand. Or you'd be selling beef to them already.

So what happens with the beef production glut?

"so you have inflation, so the interest in the mortaje goes up"

Increase in prices doesn't necessarily mean inflation. It's just scarce goods being shared out by the market.

And as we know putting up interest rates doesn't fix inflation. Argentina being the case in point (and they still haven't learned that lesson).

[gus_massa]

[Sorry for the late reply.]

> Where is the excess Argentinian beef scheduled for the USA going to find a market?

The offer is elastic too. A previous government added too many task and restrictions to the export of beef, so the producers sold the young cows instead of letting them grow to get more mothers. After 2 or 3 years the numbers of reproducing cows was so low that we almost had to import beef from Uruguay. IIRC the land was converted to soy farms, because exporting soy had a lot of taxes but not as many as beef.

[watwut]

> There is no untapped source of demand. Or you'd be selling beef to them already.

Import is buying. You will have higher prices because stuff you buy is more expensive.

But also, export as in selling others tend to go up as currency looses value.

> Increase in prices doesn't necessarily mean inflation.

What do you think inflation is?

[neilwilson]

"You will have higher prices because stuff you buy is more expensive."

Why? Why won't the supplier have lower income because they have no other alternative than to sell for the same USD amount as they did before?

Why is the supplier always the price setter? Can you always charge your customers anything you want to and they keep buying?

The customer is king, but not when FX is involved? How does that work?

"What do you think inflation is?"

It's a general rise in the entire price range. If the price of eggs goes up, but your wage didn't then that is a redistribution of scarce resources, not inflation.

That is, after all, how price competition works.