Argentina economy crisis - part I

Just ten years ago, Argentina shook the world with a national debt default after which an unprecedented economic crisis followed. In the period from 1976 until 1983 the National Reorganization Process occurred and amassing a huge national debt took place. The money gathered on the international markets was spent in numerous dubious projects and the nationalization of private debts. The Falklands War also took a toll on the unstable economy at the time, further increasing the national debt. In 1983, the election of President Raúl Alfonsín restored democracy in the country. His government planned to stabilize economy with the creation of a new currency called the austral. Hoever, the presidents plan had many faults, since the new currency didn’t actually change the poor economical structure. When Argentina became unable to pay the interest of national debt consequently the confidence in the austral currency collapsed. Inflation spiraled out of control reaching in July 1989 levels over 200%. Read more about the Argentina economy crisis...