Radical shifts and housing financialization in peripheral economies: Argentina?s mortgage dynamics and recent inflation indexed housing loans

SOCOLOFF, IVANA

Lund

Conferencia; Conferencia Magistral; 2017

Lund University

In line with current research that has shown that ?there are common trajectories within uneven and variegated financialization? (Aalbers, 2017), the case of Argentina seems to sustain the hypothesis that different institutional configurations are leading to an increase in mortgage debt and housing centered financialization fueled by a growing international liquidity and overaccumulation. Consequently, Argentina?s relative disconnection from the ?financialization track? between 2001 and 2015 would not be at odds with recent drastic shifts in the countries? financial institutional framework that -as in the case of Spain- are part of its own path towards housing financialization. To analyze this shift we take the case of controversies that emerged in their design and implementation of indexed loans as well as the role of developers? lobbying towards the diffusion of these loans, despite Argentina?s high inflation rate (30% aprox) and its dramatic history with inflation indexed credits. Analyzing qualitative and quantitative data, we study the interlinked trajectories of these private-public agents as part of the conditions of possibilities for this shift. Finally, the case of Argentina?s mortgage loans dynamic and recent evolution reveals to us that the debate over housing financialization in peripheral economies should take drastic shifts more seriously. In a way, this in-depth historical analysis shows that unstable political regimes and intra-elite struggles play a key role in unlocking housing financial reforms in a ?common? but non-linear trajectory.