Debt crises in Argentina: origin, trends and prospects

GAO Qingbo1

(1.Institute of Latin American Studies at the Chinese Academy of Social Sciences)

【Abstract】In the discussion of the middle income trap, the foreign debt problem has been seen as a major cause of Argentina’s failure to maintain sustainable growth. Argentina encountered two full-blown debt crises in 1982 and in 2001 respectively, leading to slow growth in the following decades. What is the source of the crises? How will its problems evolve in the future? This article argues that given Argentina’s economic situation and the influence of populism, the country’s economic and social policies have mismatched each other, a problem that has exacerbated by voting politics, thus prompting concerned parties to make choices based on their respective interests. Unfortunately, such a situation goes against the interests of the public. This is the problem that Argentina needs to solve in the long term.

【Keywords】 debt crisis; currency board system; populism; public choice; middle-income trap;

【DOI】

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    Footnote

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This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 06, Pages 92-105+7

November 2015

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Article Outline

Abstract

  • 1 A review of the 1982 debt crisis
  • 2 A retrospect of the 2001 debt crisis
  • 3 Reflections on the two rounds of debt crises
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