Learning the Hard Way

Learning the Hard Way

Argentina

Argentina seems only to learn the hard way. It took a defeat in a war with Britain 20 years ago to help restore democracy. Ten years later, Argentines had to endure hyperinflation before creating a currency board that delivered the longest period of price stability in generations. Now, with the government on the brink of defaulting on its $130 billion debt, Congress has approved a law forbidding the government from running a budget deficit ever again. This zero-deficit law and plenty of luck are all that stand between Argentina and default. Optimists believe this law will gain the same exalted status as the convertibility law of 1991 that set up the currency board. Although Arg

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial