Argentina Currency Peg and Fiscal Reforms

Project instructions:

Introduction
This case study discusses the economic situation in Argentina from 1973 to 1989. It first focuses on the roots of Argentina?s economic problems and the execution of ineffectual policies during this period. It then examines the basis of the convertibility plan that was implemented in 1991.
Activity Instructions
Respond to the following:
? Discuss the possible risks of the U.S. dollar peg. What are the advantages and disadvantages of such a policy?
? Evaluate the effects of the fiscal policies implemented by Menem and Cavallo in connection with the convertibility plan.
When analyzing a case study, all the used references (including the Internet) should appear within the text [e.g. (John Doe, 2008)] and on the references page. You are expected to apply all applicable course concepts, as well as those specific to the chapter from which the case or paper topic is drawn. The analysis should also contain a summary of related current developments obtained through searches on the Internet.

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