Argentina Since Default: The IMF and the depression Alan B. Cibils, Mark Weisbrot and Debayani Kar

More than eight months since the economic crisis has passed and Argentina's economy continues to decline, with the recession now having lasted more than four years. This paper looks at Argentina's crisis since the default in an attempt to find a way out of the Depression. argentina_default (Download the full text in PDF format)

Distraught Argentines Look for Solutions

Peso plunges by 44 pc against dollar Argentina’s peso tumbled as much as 44 per cent against the dollar as exchange houses opened for the first time since the Government said it would devalue the cur­rency and default on its debts. The peso was quoted at 1.8 per dollar at money-changers in Buenos Aires, indicat­ing President, Mr Eduardo Duhalde, will fail to keep it fixed at the 1.4 rate set, trad­ers said. Mr Duhalde gave up the one-to-one peg to the dollar, in place for a decade, in a bid to revive growth and rebuild confi­dence in the economy. Hundreds…

Economic Debacle In Argentina : The IMF strikes again Arthur MacEwan

In the midst of their fourth year of recession, with the official unemployment rate approaching 20%, and with increasing cutbacks of social programs, Argentineans took to the streets in the days before Christmas. Sparked by the government's latest economic policies, which restricted the amount of money people could withdraw from their bank accounts, political demonstrations and the looting of grocery stores spread across the country. First the government declared a state of siege, but with the police often standing by watching the looting "with their hands behind their backs," there was little the government could do. Within a day after…

How the IMF Messed Up Argentina Mark Weisbrot

Argentina's implosion has the fingerprints of the International Monetary Fund all over it. The first and overwhelmingly most important cause of the country's economic troubles was the government's decision to maintain its fixed rate of exchange: one peso for one U.S. dollar. Adopted in 1991, this policy worked for a while. But during the past few years the dollar has been overvalued, which made the peso overvalued as well. Contrary to popular belief, a "strong" currency is not like a strong body. It is very easy to have too much of a good thing. An overvalued currency makes exports too…