The Crisis Of Argentina In 2001 2002

1534 words - 6 pages

This assignment is about the crisis that affected Argentina in 2001. First of all, we will try to understand how this crisis occured. In a second part, we will see the measures taken by the Argentinian government and will analyse of the results of those measures. Then, we will take a look at the interventions of the International Monetary Fund and their consequences. To conclude, we will analyse this crisis, trying to determine what could have been done and what to learn from this economic disaster.After its crisis at the end of the 1980's, Argentina started to find the road to a good health on April 1rst, 1991, when Carlos Menem's government installed the "convertibility system" to fight against hyperinflation. Under the Convertibility law, the peso and the U.S. dollar circulated at a "1 to 1 exchange rate". The owner of a peso had a property right for a dollar and could freely convert this peso into a dollar.The crisis of 2001 originated in a complex mix of problems that had been at work from the mid-1990s or even before. The crisis also was the result of a weak financial systems that became too exposed to exchange rate risks as well as the large-scale capital inflows driven by cyclical downturns in the industrialized countries in the early 1990's. To this can be added an excessive demand which rose asset prices fueled by strong credit expansions, speculative and imprudent investment decisions, weak or clumsy governance of companies and banks and a general lack of transparency in the public sector.In concrete terms, Argentina's economy went into recession in September 1998 as a consequence of the Asian and Russian currency crises, which finished in a general decline in volumes of investment to emerging market economies. The Brazilian currency crisis of 1999 led the economy into another blow.When Fernando de la Rúa became president in December 1999, things went from bad to worse. His administration's new economic plan, approved by the IMF, was supposed to lower interest rates and produced a boom by raising taxes, which aimed to reduce the government's deficit. But its timing was awful. World interest rates in December 1999 were on the rise, so Argentina's rates also rose and the economy fell deeper into recession.From there the "de la Rúa administration" committed various policy mistakes that damaged the successful reforms of the early 1990s: stable money and sound banking.In this context of growing economic crisis, a political crisis appeared as well.In late 1999 and early 2000, the incoming government of "de la Rúa" choked the starting recovery by imposing large tax increases that took effect at the beginning of 2000. The government thought the tax increases were necessary to reduce the budget deficit. Instead, tax collections fell. When Domingo Cavallo became minister of the economy in March 2001, he pushed through a financial transaction tax, which has been increased in august to its current rate of 0.6 percent on banks'...

Find Another Essay On The crisis of Argentina in 2001-2002

The Brave Women of Argentina Essay

2214 words - 9 pages A mother’s love is one of the strongest passions in the world. This love can drive a mother to do drastic deeds to save her children and her family. The mothers and the grandmothers of the Plaza de Mayo truly exemplify the power of a mother’s love. Their love was shown during the Dirty War in Argentina in 1976. During this time, the awful military dictatorship run by Jorge Rafael Videla made people disappear to make others scared of

Education in the 2001 Election Essay

2753 words - 11 pages Education in the 2001 Election The United States has always been criticized for its weakness in education. Although the country is considered the greatest superpower of the world, it has constantly been at the rear of education. Other countries seem to have more core academic instruction, better success rates, a longer school year, and quicker learning, such as starting to read and write and starting certain math and science subjects at

Discovery of Fossilized Dinosaur Eggs in Argentina

1457 words - 6 pages of these embryos undoubtedly serves as a threshold to further scientific studies of the much studied dinosaur. Works Cited Chiappe, L., Coria, A., and Dingus, L., 2002. “Ground breakers of Patagonia: paleontologists rarely have the chance to document dinosaur behavior. In Argentina, the authors found rock-solid evidence of a sauropod’s private life.” Chiappe, L

The Cincinnati Riots of 2001

2770 words - 11 pages , 2002). At Cincinnati, leaders lost this power. Both police and Cincinnati council tried with little success, to stop the protesters. It was apparent that a time for change was nigh. With only a few individuals, about 200 in the morning of 9th April 2001, the number grew with the speed as supporters joined in rioting (Levin, 2002). Lessons learned from these riots Cincinnati riots, while not the first of the kind, brought out an important

International Management III Case 7: Softbank Corporation: Internet and Web-Related Acquisitions, Market Expansion and Global Strategy in 2001/2002

1161 words - 5 pages of US-style individual investors. Softbank's initiative in this segment with NASDAQ is expected to bring big structural changes in the stock markets in Japan if the economy improves in 2001-2002.In addition, Softbank plans to consolidate its position in Japan's online industry in virtually every sector-education, e-commerce, retailing, banking, finance, insurance and bond markets, distribution, and broadcasting. In the present circumstances, Softbank is one of the main Internet companies in the world. It will be interesting to see if it can hold its position as the world Internet Company or whether it will just be run over by another Softbank-type company.

The Development Of Cuba And Argentina

2322 words - 9 pages Reform, Tempe, Arizona, Arizona State University Press, 1998 De La Balze, Felipe. Remaking the Argentine Economy. New York, Council of Foreign Relations Press, 1995.Sweeny, Ernest, ?Argentina the Current Crisis in Perspective? America Vol. 186 N.4 (2002): pp. 19-20 Serrano, Miguel. ?Keeping the Reform Alive? The Economist Vol353 pp. 23 Erro, Davide. Resolving the Argentine Paradox. Boulder, Colorado, Lynne Rienner Publishers Inc. 1993.

The Sarbanes-Oxley Act of 2002

3096 words - 12 pages everybody's confidence in the securities markets. Realizing that change had to be made and looking to restore the nation's confidence in the markets, Democratic Senator Paul Sarbanes of Maryland and Republican Representative Michael Oxley of Ohio purposed a new bill to the floor. This bill sought to increase the rules and regulations regarding auditing standards and accountability of corporations. The bill was called "The Sarbanes-Oxley Act of 2002", also

The Sarbanes-Oxley Act of 2002

4800 words - 19 pages The Sarbanes-Oxley Act of 2002Introduction2001-2002 was marked by the Arthur Andersen accounting scandal and the collapse of Enron and WorldCom. Corporate reforms were demanded by the government, the investors and the American public to prevent similar future occurrences. Viewed to be largely a result of failed or poor governance, insufficient disclosure practices, and a lack of satisfactory internal controls, in 2002 George W. Bush signed into

The Sarbanes Oxley Act of 2002

1464 words - 6 pages corporation's performance. See Warren E. Buffett, Who Really Cooks the Books, NY Times (Jul. 24, 2002). "When a company gives something of value to its employees in return for their services, it is clearly a compensation expense. And if expenses don't belong in the earnings statement, where in the world do they belong?" Id. Sarbanes-Oxley only indirectly addresses the problem of the inclusion of executive compensation in financial

The comeback of Catepillar: 1985-2002

1929 words - 8 pages "The Comeback of Caterpillar: 1985-2002"Midterm ExamCathy ButtonsMBA 0008RAugust 6, 2007IntroductionCaterpillar, Inc is a United States corporation currently headquartered in Peoria, Ill. Caterpillar is commonly referred to as CAT, their listing on the New York Stock Exchange. They describes themselves on the corporate website as "the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and

This is an essay on the culture of Argrntina and what life is like in Argentina.

2144 words - 9 pages state.The way you think and feel is influenced by the culture in which you were raised and can be changed somewhat if you move into another area with a different type of culture. "Variations among cultures is attributable to such factors as differing physical habitats and resources...".(britannica 2)Argentina, officially known as the Argentine Republic, has a very diverse culture. Before I get to the culture of Argentina let me provide some facts

Similar Essays

The Essey Is About Crisis In Argentina

3269 words - 13 pages Uruguayan operation of Banco de Galicia. Brazil still suffers the impact of the Argentinian crisis. However, in spite of its effort on signalling abroad during the devaluation of the Argentina peso that Brazil's economy was healthy by paying debt before the exercise date, the external investor is still looking to Brazil with a lot of caution. In Paraguay, despite the Argentine crisis, the economy grew 2.5% in 2001 after three years of sluggish

Crisis In Argentina Essay

1715 words - 7 pages Research Project Argentina's economic crisis of 2001 - Causes and Consequences Argentina, once the darling of Latin America, has now become its liability. During the first half of the 1990's it grew 45 % while curtailing decades of hyperinflation. The region made major changes to its foreign investment policy, becoming a favourite among emerging market investors. Despite early gains, Argentina is once again in a deep economic crisis-its fourth

The Argentine Economic Crisis 1999 2002 Essay

3411 words - 14 pages Deal 16 Jan. 2003. Forbes Magazine. March 4, 2003 <> Norden, Deborah L. and Roberto Russel. The United States and Argentina. New York: Routledge, 2002. Mussa, Michael. “Argentina and the Fund: From Triumph to Tragedy.” Policy Analysis in International Economics 67 (2002) The Argentine Crisis: Chronology of Events After Sovereign Default Since April 7 June 2002. Standard

A Brief History Of Imf Programs In Turkey And The Reasons Behind Their Ineffectiveness With The Analysis Of 2001 Financial Crisis As An Example

1705 words - 7 pages A Brief History of IMF programs in Turkey and The Reasons Behind Their Ineffectiveness with The Analysis of 2001 Financial Crisis as an Example Turkey first joined to IMF in 1947. It was shortly after in 1948 that Turkey's adventure with IMF started when for the first time, Turkey applied for a financial assistance to alleviate the consequences of 1948 economic crisis.1 Thereafter, Turkish governments chose to look for help from their friend