What are the underlying causes of the Argentine financial crisis that began in 2001?
Explain the causes of the financial crisis. This paper entails Factors that Caused the Financial Crisis in Argentina.
In the 1990s, Argentina's growth rate outperformed many nations in Latin America. In
the late 1990s, the nation's hard currency peg against the US Dollar, heavy borrowing, and pro-
cyclical approaches left Argentina with various economic shocks. It ultimately caused the
emergence of a severe currency, banking crisis, and sovereign debts (Saxton). In November
2001, there was a sharp rise in interests because of the peso's devaluation, which caused worries
among the Argentines.
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