Retrospect on Argentina currency crisis

Details

Supervisors

Bodart, Vincent

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [60] en sciences économiques, orientation générale

Abstract

At the beginning of the new millennium, Argentina encountered a devastating economic deterioration which led to a formal default on public debt in 2001. In order to define main drivers of the crisis, I studied the dynamics of the country's macroeconomic indicators (international trade, the balance of payments and state budget) over a decade prior to 2001 and I made a conclusive explanation about factors that could have caused the crisis. In addition, the paper contains an analysis of the role of the International Monetary Fund and its influence on the government's decisions during the peak of the crisis. Seventeen years later, in 2018, Argentina faced new economic downturn of a similar nature. Thereby, I made a comparative analysis of two crises, in order to understand if the main reasons for the economic deterioration were the same in 2001 and in 2018.