The Current Unsustainable Boom in the Argentine Economy

16 Pages Posted: 10 Mar 2013

Date Written: February 6, 2013


The end of convertibility and a subsequent default, confiscation of deposits and devaluation is the path that Paul Krugman proposes for several countries as a solution to the European crisis. We show that Krugman’s reference to Argentine experience is misleading and dangerous. He underestimates the crisis of 2001-2002 and overestimates economic growth achieved in the period 2003-2011. Any country following this example will find it unattractive due to the difficulties it is bound to face with economic growth, control of public spending, and inflation.

Keywords: Argentina, Menemism, Kirschnerism, unsustainable growth

JEL Classification: E62, E65, N16

Suggested Citation

Ravier, Adrian O., The Current Unsustainable Boom in the Argentine Economy (February 6, 2013). Available at SSRN: or

Adrian O. Ravier (Contact Author)

Universidad Francisco Marroquín ( email )

Escuela de Negocios
Calle Manuel F. Ayau (6 Calle final), zona 10
Guatemala, 01010


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