The Argentine Great Depression (1998–2002)

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The Argentine Great Depression, spanning from 1998 to 2002, was a severe economic downturn marked by a significant contraction in GDP and a rise in unemployment and poverty. During this period, Argentina's economy shrank by 28%, with real wages falling by nearly 24% in 2002 alone[1][3]. The crisis was exacerbated by high inflation, which peaked after the government defaulted on its debt and devalued the peso[1][3]. The Convertibility Plan, which fixed the peso to the US dollar, collapsed, leading to a loss of economic stability[5]. Key factors contributing to the crisis included government instability, poor fiscal and monetary policies, and external economic shocks[3][4]. The IMF's austerity measures were criticized for worsening the situation by focusing on inflation control without addressing employment and growth[4]. The crisis led to significant social unrest and highlighted the importance of stable monetary policies and fiscal discipline in preventing economic disasters[1][3].