- Christina Daseking, Atish Ghosh, Timothy Lane, and Alun Thomas
- Published Date:
- February 2005
© 2004 International Monetary Fund
Typesetting & Production: IMF Multimedia Services Division
Figures: Theodore F. Peters, Jr.
Lessons from the crisis in Argentina / Christina Daseking … [et al.]—[Washington, D.C. : International Monetary Fund, 2004].
p. cm.—(Occasional paper, 0251-6365); 236
Includes bibliographical references.
1. Argentina—Economic conditions. 2. Argentina—Economic policy. 3. International Monetary Fund—Argentina. 4. Financial crises—Argentina. I. Daseking, Christina, 1964–II. Series: Occasional paper (International Monetary Fund); no. 236.
HC 175.D37 2004
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In 2001–02, Argentina experienced one of the worst economic crises in its history. A default on government debt, which occurred against the backdrop of a prolonged recession, sent the Argentine currency and economy into a tailspin. Although the economy has since recovered from the worst, the crisis has imposed major hardships on the people of Argentina, and the road back to sustained growth and stability remains long. The events of the crisis are all the more troubling in light of the fact that Argentina was widely considered a model reformer and was engaged in a succession of IMF-supported programs through much of the 1990s.
This paper examines the origins of the Argentine crisis and its evolution up until early 2002. It analyzes the economic forces leading up to the crisis and draws general policy lessons, both for countries’ efforts to prevent crises and for the IMF’s surveillance and use of its financial resources. The review was prepared by a staff team under the general guidance of Timothy Geithner, former Director of the Policy Development and Review Department. The staff team comprised Timothy Lane (Assistant Director, Policy Review Division), Atish Ghosh, Christina Daseking, and Alun Thomas.
The authors are grateful to George Anayiotos for his contributions at the earlier stages of the project, to Sibabrata Das and Ivetta Hakobyan for research assistance, to Olivia Carolin and Sylvia Palazzo for secretarial assistance, and to numerous colleagues at the IMF for detailed comments on the paper. Jeff Hayden of the External Relations Department edited the paper and coordinated production of the publication.
An earlier draft of the paper was discussed by the IMF’s Executive Board, and the current version has benefited from comments made on that occasion. The opinions expressed in the paper are those of the authors, however, and do not necessarily reflect the views of the IMF or of its Executive Directors.