Argentina

In 1816, the United Provinces of the Rio Plata declared their independence from Spain. After Bolivia, Paraguay, and Uruguay went their separate ways, the area that remained became Argentina. The country's population and culture were heavily shaped by immigrants from throughout Europe, but most particularly Italy and Spain, which provided the largest percentage of newcomers from 1860 to 1930. Up until about the mid-20th century, much of Argentina's history was dominated by periods of internal political conflict between Federalists and Unitarians and between civilian and military factions. After World War II, an era of Peronist populism and direct and indirect military interference in subsequent governments was followed by a military junta that took power in 1976. Democracy returned in 1983 after a failed bid to seize the Falkland (Malvinas) Islands by force, and has persisted despite numerous challenges, the most formidable of which was a severe economic crisis in 2001-02 that led to violent public protests and the successive resignations of several presidents.

Economical characteristics

 * Currency: Peso (ISO code: ARS)
 * Central bank discount rate: NA%
 * Commercial banks lending rate: 19.47% (31 December 2008)
 * Stock of money (M1): $32.57 billion (31 December 2008)
 * Quasi money (with M1 makes M2): $46.18 billion (31 December 2008)

Notable events:

 * Banking crisis: January 1885, 1890-1891, 1914, 1931, 1934, 1980-1982, May 1985, 1989-1990, 1995, March 2001
 * Hyperinflation: 1984-1985, 1989-1990
 * Years in inflation: 24.7% (share of years 1816-2009 with annual inflation above 20 per cent per annum)
 * Public default: 1827-1857, 1890-1893, 1951, 1956-1965, 1982-1993, 1989, 2001-2005(external), 1890-1893, 1982, 1989-1990, 2001-2005, 2007-2009(domestic)

Inflation in Argentina
Argentina was through most of the 19th century subject to a permanent paper money inflation. In 1881 were in circulation 882 million paper pesos in a country with a population of little over 3 million. 100 golden pesos were exchanged for 2405 paper pesos. The money was turned into a gold currency by exchanging at a rate of 25:1 and fixing it to gold. But this had to be given up in 1885 due to the growing government debt - and another round of inflation followed. The paper peso reached its low in 1891, with an agio of 287% to the golden peso. A reform was suggested by Ernesto Tornquist and in 1899 became law. The paper peso was fixed at 0.44 of the golden peso and each could be converted into the other at this rate by government sponsored cash-desks. Despite a permanent deficit in state finances, the backing of the currency by gold was upheld and Argentina could prosper.

Links

 * Argentina on Wikipedia
 * Central bank of Argentina
 * Country profile (pdf) from the Enterprise Studies page (part of the The World Bank Group)
 * BBC country profile
 * Constitutional Showdown in Argentina by Mary Anastasia O'Grady, January 2010
 * For Argentina's Sizzling Economy, a Cap on Steak Prices by Larry Rohter, April 2006
 * No One Cries for Argentina Embracing 25% Inflation of Fernandez by Eliana Raszewski, March 2011
 * The International Debt Problem: The Case of Argentina by Michael Adamson, December 1985
 * Argentina Freezes Supermarket Prices To Halt Soaring Inflation; Chaos To Follow by Tyler Durden, February 2013
 * Economy woes pile up for Latin America's leftists by Robert Plummer, October 2013
 * Argentina cash controls and weak peso bring bargains, headaches, news.com.au, June 2013
 * Argentina cash controls and weak peso bring bargains, headaches, news.com.au, June 2013