Argentina Currency Crisis

Crisis 2002
In 2002, Argentina experienced a devastating currency crisis. Learn about the main
factors that led to the crisis and the consequences it had on the country.

by Hamdy Alshazly
Inflation in Argentina: 1980 to 2001

Hyperinflation Nightmare
Explore the rollercoaster ride of inflation in Argentina from 1980 to 2001, with soaring prices and economic
instability.
The Peso Exchange Rate: 2001 to 2002
From Stability to Turmoil
Uncover the dramatic fluctuations in the Peso exchange rate from January 2001 to December 2002,
reflecting the economic turmoil.
Main Factors Leading to the 2002 Currency
Currency Crisis
1 Economic Mismanagement
Learn how policy mistakes, corruption, and unsustainable debt contributed to the collapse
of Argentina's economy in 2002.

2 Banking System Vulnerability

Discover how weaknesses in the banking system exacerbated the crisis, leading to bank
closures and restricted access to funds.

3 Dependence on Dollar Peg

Explore the consequences of an overvalued currency peg to the US Dollar and the challenges
it posed to Argentina's economy.
Consequences of Currency Board Policy
1 Unemployment Surge
Uncover how the currency crisis and the
currency board policy impacted
unemployment rates, exacerbating the
economic downturn.
2 Decline in Economic Growth
Examine the negative effects of the
currency board policy on Argentina's
economic growth and its lasting
consequences.

3 Widespread Social Repercussions

Delve into the social impact of the government's response to the crisis, including bank closures
and restricted access to funds.
Recession of 1999/2001 and Peso's Value
Perception

Recession's Ripple Effect

Discover how the recession of 1999/2001 affected Argentina's government deficits and eroded the perception
of the peso's value.
Impact of Depreciation on Inflation
Inflationary Consequences
Explore how the depreciation of the peso during the currency crisis affected inflation rates and
further destabilized the economy.
Lessons Learned from the Argentina
Currency Crisis

1 Economic and Monetary Policy

Analyze the valuable lessons learned from the currency crisis to shape future economic and
monetary policies in Argentina.

2 International Financial Reputation

Examine the long-lasting impact of the currency crisis on Argentina's international financial
market reputation and challenges following the crisis.