Sei sulla pagina 1di 8

ARGENTINAS

MONETARY CRISIS
By: Felantinu Arasy Jonnata
INTRODUCTION
Argentina merupakan negaraAmerika
Latinyang terletak di bagian selatan
benuaAmerika Selatan. Argentina
mempunyai kawasan yang luas dan
merupakan negara terbesar kedelapan di
dunia, sedangkan ibu kotanyaBuenos
Airesadalah salah satumetropolitanyang
terpadat di dunia.
KRISIS MONETER ARGENTINA
In the 1990s Argentina was the darling of the
international financial community. The
country had fixed the exchange rate for the
Argentinean peso to the U.S. dollar at $1 = 1
peso.
CRISIS IN 2001
By 2001, however, the economy was running
into trouble. Global economic growth
slumped and demand for many of the
commodities that Argentina exported had
fallen in tandem.
LOAN FROM IMF
Starting in 1999, the Argentinean economy
entered into a tailspin that was to take
unemployment up to 25 percent by 2002.
Anticipating that the country would have to
devalue the peso against the dollar,
corporations and individuals started to pull
money out of pesos, placing their funds in
dollar accounts.
ARGENTINA GOVERNMENT
EFFORT
Throughout 2001 the Argentinean
government had been trying to support the
value of the peso with the help of the loan
from the International Monetary Fund, but it
was becoming ever more difficult, and the
debt default was the final nail in the coffin.
In early 2002, the government bowed to the
inevitable and decoupled the peso from the
dollar, allowing it to float freely. It
immediately fell to $1=3.5 pesos.
THE END OF CRISIS
The fall in the value of the peso helped to
revive Argentinean commodity exports,
which were now much cheaper for foreign
buyers. A rebound in global economic growth
after 2001 also helped, as did an economic
recovery in neighboring Brazil. By 2003, the
economy was once more on a growth path
and unemployment was falling. In 2005
Argentina repaid its entire debt to the IMF.
CASE DISCUSSION STUDY
1. How did the fixed exchange rate against the dollar
that Argentina adopted in the 1990s benefit the
economy?
2. Why was Argentina unable to maintain its fixed
exchange rate regime? What does this tell you about
the limitations of a fixed exchange rate regime?
3. Do you think that the IMF was correct to insist that the
Argentinean government adopt a fiscalausterity
program? What other approach could the IMF have
taken?
4. In the end, the Argentinean government was forced to
abandon its peg to the dollar. In retrospect was this a
good thing? Why? What are the risks inherent in a
floating exchange rate?