ImportSubstitutionIndustrialization(ISI).pptVIP

Argentine Financial Crisis;Introduction;Agenda:;What is a Financial Crisis?;Stages of a Financial Crisis;Stages of a Financial Crisis;Stages of a Financial Crisis;Stages of a Financial Crisis;Increasing Vulnerability:;Case of Argentina;Fiscal Deficit Snowballs Government Too Reactionary to pull out of crisis Tax revenue declined due to recession and avoidance Unwilling to devalue because it would multiply government debt Government unable to reduce expenditures due to social instability Bottom Line: Huge fiscal deficit and the weakness of the economy triggered the default ;Argentina’s debt: U