The Evidence and Impact of Financial Globalization

Chapter 46

Argentina’s Default of 2001

S. Takagi

Osaka University, Osaka, Japan

Outline

Introduction

Economic Performance Under the Convertibility Plan, 1991–98

Early Achievements, 1991–94

The Mexican Crisis and Recovery, 1995–98

Economic Difficulties, 1998–2001

Recession and Early Signs of Economic Distress, 1998–2000

The Crisis Unfolds, 2001

Economic and Political Background

Economic Origins of the Crisis

Fiscal Policy Developments

Political Background to the Crisis

The Default and Its Aftermath

The Collapse of the Convertibility Regime

Dislocation and Subsequent Recovery

Glossary

References

Introduction

The Argentine default of 2001 was one of the most catastrophic events in recent economic history. It was the largest sovereign default ever recorded ...