Argentina - The collapse of the Currency board & Beyond

Case Details:

Price:

Themes

Till the late 1990s, Argentina had been one of the more prosperous economies in Latin America. But Argentina had been going through troubled times since then. The country's currency board (essentially a fixed exchange rate system) had aggravated the recession, which started in 1998. Unemployment had risen sharply and was likely to remain high in the years ahead. In the absence of growth, Argentina's huge public debt had become difficult to service. The economic crisis had also created serious political instability. In May 2003, the new President, Nestor Kirchner, considered a political lightweight, faced the challenge of restoring economic and political stability and winning back the confidence of the general public. The case brings out the challenges in framing economic policies in emerging markets.