Abstract
Following the introduction of the Convertibility Law in 1991, Argentina appeared to enjoy approximately ten years of low inflation, and a higher rate of gross domestic product (GDP) growth than had a number of other Latin American countries for some years. From 1999 onwards, however, the Argentine economy moved into a recession and, by the end of 2001, the country’s financial crisis reached its peak. In 2001, in response to a number of announcements by the government, the public lost its confidence in the government’s ability to manage its finances and suspected the possibility of peso devaluation. That, in turn, led to a bank run at the end of 2001 that pushed the banking sector to the brink of a liquidity crisis, and later forced the government to freeze bank deposits.
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© 2006 Sima Motamen-Samadian
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Motamen-Samadian, S. (2006). Convertibility Law and its Role in Argentina’s Economy. In: Motamen-Samadian, S. (eds) Economic and Financial Developments in Latin America. Centre for the Study of Emerging Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230504455_2
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DOI: https://doi.org/10.1057/9780230504455_2
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