Argentine Currency Board

only suffered a currency crisis, but also suffered a political crisis. Fallout from the economic collapse was so severe the Argentinean population resorted to civil unrest and protest, which in turn exacerbated Argentina’s problems at the turn of the century. While other issues related to this financial crisis such as the impact on the lives of the Argentinean population or the political turmoil and corruption are certainly worthy of discussion, this paper will focus on the currency crisis and the

recognition, their development hasn’t been easy as it has faced major critical moments to their economic success. For example during the 1982 recession the gross domestic product dropped by 14.1 % which resulted to overvaluation of their currency which made the currency more vulnerable to harsh changes in international economy. This changes led to decrease in capital which decreased availability of finance meant to finance investments. According to Buchi this led to an increase in unemployment by 23%

emerging market, never having gained a solid foothold in the world markets. Argentina’s growth position over the past decade has come at the heels of some significant failings in its monetary policies and an extended recessionary period where its currency was devalued significantly (Eiteman, Stonehill, & Moffett, 2010). The climax of the crisis faced by Argentina occurred in early 2002, when after an extended period of recession and political and economic unrest, its decade-long

imposed by the Troika, there was a strong rally in anticipation of deal eventually being signed between Greece and her creditors. Markets have, therefore, seemingly taken the view that the best known outcome is for Greece to remain in the single currency, regardless of the imperfections of any agreement. In the absence of substantial debt write-downs, however, the situation facing Greece remains dire. Both the US and International Monetary Fund (IMF) have

and Brazil and Uruguay to the northeast. Argentina is the second largest country of South America after Brazil, and the 8th largest country in the world. Its total area is approximately 2.7 million km². Argentina claims a section of Antarctica (Argentine Antarctica) but has agreed to suspend sovereignty disputes in the region as a signatory to the Antarctic Treaty. Argentina also asserts claims to several South Atlantic islands administered by the United Kingdom. With a population of more than 42

defeat of the Spanish Empire in 1824, a federal state was formed in 1853-1861, known today as the Republic of Argentina. Argentina’s Financial System a. Historical Overview The economic history of Argentina is one of the most studied, owing to the "Argentine paradox", its unique condition as a country that had achieved advanced development in the early 20th century but experienced a reversal, which inspired an enormous wealth of literature and diverse analysis on the causes of this decline. Argentina

shocks, which in turn lead to low export-to-GDP ratio (Krueger 2002). For example, the US dollar appreciated against other currencies, which caused the peso also to appreciate; this resulted in weakening of demand for Argentine exports (Nataraj & Sahoo 2003). A non-competitive economy and international debt all lead to a balance of payments crisis. The 2001 the Argentine recession grew rapidly deeper. The IMF gave additional funds, on the condition that the government would eliminate its budget

rate of exchange was 100 local currency units per ounce of gold, that country could have 100,000,000 local currency units outstanding. Any change in its holdings of

BANKING PAPER REQUIEREMENTS My paper will discusses about the link between both crisis in Greece and Argentina, what we have learnt since this crisis and what are the common mistakes committed by both. Economic environment “Eleven years after the financial crisis of 2001, which led to the largest default in history (75 billion Euros), Argentina has reimbursed, the August 3, the last holders of securities issued during the freezing of assets, called "corralito" ("small enclosure")

Argentina’s Post-Crisis Economic Reform I. Summary a. Following a steep currency devaluation and the largest sovereign debt default in history, Argentina entered a deep recession with high unemployment and social upheaval i. Brought to power new gov’t ii. With it, a shift away from market-oriented policies toward greater gov’t control of the economy in the pursuit of social equity b. Policies reflect priority for financial independence, social equity, and what may be considered a commitment to populist