From triumph to tragedy

In the sad economic history of Argentina during the last half-century, the past decade encompassed a remarkable transition. Rising from the ashes of the episode of economic chaos and hyperinflation at the end of the 1980s, orthodox policies (Carlos Menen, Domingo Cavallo, WHICH FEATURED A HARD PEG OF THE PESO AT PARITY TO THE US $ LIMITING DOMESTIC MONEY CREATION) brought a decisive end to a decades of monetary instability and launched Argentine economy into four years of rapid and sustainable expansion.

After a sharp recession in 1995 (high unemployment) Argentine economy resumed rapid growth from late 95 until the spillover effects of the Brazilian crises that hit Argentina in late 1998.

At the time, many Argentina’s economic policy were applauded and even suggested as a model to other emerging market countries.

Two years later, Argentina’s long experience with hard money and orthodox policies has ended in tragedy. The economy is well into its fourth year of recession ...