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Article: Tough deal; Argentina's debt restructuring.
- Article from:
- The Economist (US)
- Article date:
- March 5, 2005
CopyrightCOPYRIGHT 2005 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Debtor governments should not conclude from Argentina that default is an easy option
THE decline and collapse of Argentina's economy in 1998-2002 still arouses great passions, and not just among the people of that ill-starred country. No wonder. Argentina's chaotic default and devaluation, and its desperate efforts to stave these off, inflicted great hardship. By mid-2002, living standards had dropped by a fifth from their peak; unemployment soared to 21%. With hindsight, it is clear that the mistakes of many clever people--Argentine policy-makers, officials at the International Monetary Fund and America's Treasury, as well as the world's financiers--contributed ...