Argentina’s Exchange Rate
A look at the contribution the Argentinian exchange rate has played in this country’s current economic crisis.
This paper examines the qualities of Argentina’s exchange rate and whether these properties have been good for the economy or not. It looks at factors such as it being a fixed rate vs. a floating rate and how each of these are better in certain economic conditions.
The country of Argentina has over the past several months seen the endemic problems that is has had with its economy over the past years (and even decades) burgeon into a crisis, resulting in the devaluation of its currency, the closing of many schools, a crisis in confidence by both Argentineans and people in many other countries, and substantial political upheaval as the government has repeatedly – and rapidly – changed hands. The causes for the country’s economic failure are complex and interlinking: This paper examines one of the most important causes, which is the country’s exchange rate.