Argentina’s Economy Minister Domingo Cavallo introduced the system of peso convertibility in 1991, which stated an exchange rate of one peso one dollar. This policy helped Argentina to bring inflation down from 84% in 1991 to 7.3% in 1993. With this rapid recover, Argentina was a model of successful economic reform to imitate. Their economy was stable and growing. Inflation was in single digits, output was growing tremendously, and the economy had managed to beat the Mexican Tequila crisis in the mid-1990s. Investors started to see good opportunities and foreign capital started to flow into the country, contributing to an acceleration of economic growth. Additionally, during 1997, Asia started with their crisis, which raised fear
Argentina’s Economy Minister Domingo Cavallo introduced the system of peso convertibility in 1991, which stated an exchange rate of one peso one dollar. This policy helped Argentina to bring inflation down from 84% in 1991 to 7.3% in 1993. With this rapid recover, Argentina was a model of successful economic reform to imitate. Their economy was stable and growing. Inflation was in single digits, output was growing tremendously, and the economy had managed to beat the Mexican Tequila crisis in the mid-1990s. Investors started to see good opportunities and foreign capital started to flow into the country, contributing to an acceleration of economic growth. Additionally, during 1997, Asia started with their crisis, which raised fear