Circular 1050 and Indexed Debts. Social Demands and Political Responses during Argentina’s Democratic Transition

Abstract

This article contributes to the scholarship on Argentina’s democratic transition by analyzing indexed household debt generated under Circular 1050 as a critical lens through which to interpret the shifting relationship between state, economy, and society. Departing from the predominant focus on public debt in existing literature, it undertakes a socio-historical reconstruction of private indebtedness at the intersection of authoritarian rule and democratic restoration. These debts –produced through institutionalized indexation mechanisms amidst chronic inflation– serve as a revealing site for examining how inherited economic structures mediated social demands and shaped political responses during a period of profound systemic transformation. The article posits that indexed household debt functioned not only as an economic burden but also as a social and political signifier, illuminating processes of regime delegitimation as well as the cycles of expectation and disenchantment that accompanied the democratic transition. By foregrounding the dynamics surrounding Circular 1050, the study sheds light on often-overlooked dimensions of the period, emphasizing both the institutional continuities and the contested arenas of public debate that characterized Argentina’s passage from dictatorship to democracy.