The Argentinian economic crisis of 2018: background and interpretation

ABSTRACT

This paper deals with the Argentinian economic crisis of 2018. We argue that the crisis was brought about by the process of financial fragility directly related to the choice of economic policy made by the Macri government. That fragility came to manifest in a moment of reversal in the external scenario in 2018. In our analysis, we have gathered evidence on the macroeconomic performance of Argentina to present an interpretation based on the concepts of asymmetry of power in the monetary and financial international system, external vulnerability, and sudden stop crisis.

KEYWORDS:
Argentinean economy; Macri government; exchange rate crises; external vulnerability; sudden stop crisis