Defend its peg and restore investor confidence

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Provide a graph and explanation of the Argentine crisis of 2001-2002. Include a discussion of the “vicious circle” into which Argentina descended as it defended its peg to the US$, including the role of the IMF and the government budget deficits. Why didn’t contractionary macro adjustment work in Argentina to defend its peg and restore investor confidence? If you had to draw one lesson from this episode, what would be the most important one? Explain

Reference no: EM131101375

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