Argentina has so far failed to find a sustainable road to economic growth. When global commodities rose, Argentina enjoyed the global macroeconomic dividend. Once the dividend ebbed, Argentina, which lacked the internal growth mechanism, immediately fell into a passive situation.
Argentina has been plagued by inflation for years. Due to years of loose monetary policy, inflation expectations remain high. After the global financial crisis broke out in 2008 and commodity prices fell by 20 1 1, the central bank further focused on promoting growth and neglected "stabilizing the currency", making the inflation rate exceed 20% every year. The Argentine peso has also been falling all the way. The exchange rate of 200 1: 1 against the US dollar has dropped to 1: 17.2 by the end of 20 17.
Argentina, which once ranked the top ten in the world in terms of economic aggregate, fell into recession in the1980s due to the debt crisis. Affected by the financial crisis in Southeast Asia and the financial turmoil in Brazil, Argentina's economy declined, the pressure on foreign debt intensified, and its finance collapsed. Finally, a serious economic crisis broke out at the end of 20001.
These are some of the troubles that Argentina is facing now, which can be said to be very serious. The report quoted some Argentine economic experts as saying that the government failed to come up with a clear plan to effectively curb the continued depreciation of the currency, leaving the Argentine economy still full of great uncertainty.
Of course, whether this will lead to the world economic crisis because of Argentina depends on the way the Argentine authorities handle it and some measures taken by outsiders.