The Financial crisis of Argentina in 200

The Argentine Financial crisis, which started at the end of 2001 and lasted until the end of 2002, was one of the worst crisis of its history. In the course of the 3 years prior to the crisis the GDP fell around 20%, the Argentine government already faced growing problems to pay its debt, and the banking system was starting to collapse. Foreign investors started to withdraw their investments, after the Argentine government released to peg with the dollar, the argentine currency depreciated to a low of 390%. This course of events surprised many observers, because during most of the 1990’s Argentina was considered as a model of a successful economic policy. This paper is divided in 3 sections: Section I will discus the economic situation before the crisis, the vulnerabilities and weaknesses in the economy and the factors that led to the crisis. Section II will discuss external factors that contribute to the crisis in Argentina and furthermore it will discus other emerging economies. In section III the conclusion and implementation will be given.