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Argentina Financial Crisis Free Essay, Term Paper and Book Report

Introduction The Argentina crisis of 2001-2002 exemplifies the economic, social and political upheaval that can occur during a time of economic and financial crisis. During the 1990's Argentina was heralded as successful in developing its economy. Foreign investors poured billions of dollars into the country, inflation rates were lower than those in the U.S. at the same time, and the economy was one of the fastest growing economies in Latin America. But in 2001 the Argentine economy reached its breaking point. The government announced that its foreign debt could not be paid back and billions of dollars in government spending would be cut. The Banking system collapsed, following government restrictions on withdrawals of deposits. While at the same time unemployment skyrocketed to nearly 20%. Political and Economic background The country had a history of chronic economic, monetary and political problems. In the 1980’s President Menem switched to a free-market approach that reduced the burden of government. In January 1991, he appointed Domingo Cavallo as his minister of econo......

Word Count: 928
Page Count: 3.7  (250 words a page / double spaced)


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