The Conflict

After a period of relative stability in the 1990s, Argentina has faced renewed economic turmoil as its recession deepened from 1998 to 2001. A period of intense political upheaval marked the country in late 2001 as the government resorted to desperate economic measures to turn the country around. Once a leading economy in the Americas, recent events in Argentina have left many wondering whether the country can reform its economy without undertaking fundamental reforms in the political realm as well.

Economic

• With its currency pegged to the U.S. dollar from 1992 to 2002, Argentina's government was able to curb inflation. On the other hand, the policy made Argentine products relatively more expensive compared to those of its neighbors, which stunted growth in its export sector. The government has also incurred a high foreign debt and has failed...