The Argentine Fiscal Crisis
This paper examines the current economic crisis in Argentina.
This paper is a discussion, and analysis of the fiscal crisis currently facing Argentina. The author details some of the causes of the current crisis, including defaulting on the debt, the devaluation of the country’s peso and political corruption. The affects of the crisis on the region’s stability, Argentina’s trade relationships with Europe and the United States are also discussed. The turmoil within the country itself is discussed in detail, and the author also offers some creative solutions to the crisis.
Despite criticism from some nations like Spain, who is heavily affected by Argentina’s crisis, the International Monetary Fund (IMF) has so far refused to give any more aid to the country. However, many people blame the IMF for loaning massive amounts to Argentina earlier in their crisis, along with conditions requiring the country to tighten its fiscal policies. Now, Argentina is unable to repay these outstanding loans. Some of the over 130 million in debt was defaulted on in December, and Critics say the IMF-imposed reforms have failed to work because they don’t take into account the local situation. They argue that the insistence on debt repayment is what’s brought Argentina to the brink of collapse (Editors)