Anastassios D. Retzios, PhD
Eventually, Argentina did recover. By 2004, the economy was booming again under a new Peronist president, Néstor Kirchner, who stared down the International Monetary Fund and applied his own brand of economic common sense.Apart from the fact that the default led to a lot of suffering between 2001 to mid-2003. I will tell you what happened. The “economic common sense” that Nestor Kirchner used was simply to abandon the dollar! Many of the ills of Argentina were caused by its utilization of a currency, which was fast appreciating in the ‘90’s, and which made Argentinian goods uncompetitive abroad and at home.This is what happens when you surrender monetary sovereignty. You no longer have control of the currency and you cannot adjust its value to regain competitiveness.
